Answer:
Mark-up = 101.9%
Explanation:
Mark up is the percentage of the product cost that is made as profit. It is profit expressed as a percentage of the product cost.
Mark-up = profit/product cost × 100
Mark-up = $55/54 × 100 =101.85%
Mark-up = 101.9%
Answer:
Explanation:
Mark up percentage = [ (desired profit ) + (Total selling and administrative expenses) ] / total product cost
Desired profit = $55
Total selling and administrative expenses = $26
Total cost = $80
($55 + $26)/80 = 1.0125
1.0125 - 1 = 0.0125 = 1.25%
I hope my answer helps you
In a late October marketing meeting, Theresa, the branch manager, told her marketing manager, Sal, that she needed two things by the end of the year from him: "First I want your goals for next year, and then I need your action plan to reach your goals, your ________."
Answer:
Marketing plan
Explanation:
The marketing plan is a report in which a company establishes the marketing strategies that are going to be used in a specific period of time to be able to achieve the goals that have been set. According to this, the answer is marketing plan as from the definition you infer that the marketing plan is an action plan to reach your goals.
Most international business messages tend to be written in an informal, conversational manner. should be written following generally accepted principles for writing American business letters. use active-voice constructions. should conform to the conventions of the receiver's country.
Answer:
should conform to the conventions of the receiver's country
Explanation:
The more an international business adapts its operations to the specific culture of the countries where it operates, the more likely it is that it will succeed, since customers are very sensitive to their own culture, and lacking this understanding can result in ineffective communication, and less sales.
For this reason, interantional business messages should conform to the conventions of the receiver's country: like this, people in the receiver country will not only understand the message clearly, but will also feel identified with it, raising their level of trust in the company.
Fair Value Journal Entries, Trading Investments Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The cost and fair value of this portfolio on December 31, 20Y3, was as follows: Name Number of Shares Total Cost Total Fair Value Dolphins Inc. 1,600 $28,800 $32,000 Marino Company 1,400 35,000 30,800 Namath Company 600 21,000 19,800 Total $84,800 $82,600
On May 10, 2017, Jets Bancorp Inc. purchased 1,000 shares of Giants Inc. at $24 per share plus a $150 brokerage commission.
a. Provide the journal entries to record the following (refer to the Chart of Accounts for exact wording of account titles and be sure to enter the year as part of the date):
The adjustment of the trading security portfolio to fair value on December 31, 20Y3.
The May 10, 20Y4, purchase of Giants Inc. stock.
Answer:
Trading Investments Jets Bancorp Inc.
Journal Entries - Fair Value:
Dec. 31, 20Y3:
Debit Credit
Investment in Dolphins Inc. $3,200
Gain (Loss) on Investments $3,200
To record the investment's fair value and gain.
Gain (Loss) on Investments $4,200
Investment in Marino Company $4,200
To record the investment's fair value and loss.
Gain (Loss) on Investments $1,200
Investment in Namath Company $1,200
To record the investment's fair value and loss.
May 10, 20Y4:
Investment in Jets Bancorp Inc $24,000
Brokerage Commission $150
Cash Account $24,150
To record purchase of 1,000 shares at $24 per share plus commission.
Explanation:
a) Trading securities are a category of securities that include both debt securities and equity securities. An entity holds them with the intention to sell in the short-term for a profit that arises from increases in the prices of the securities.
b) Fair value is an asset's selling price, which is freely agreed upon between a willing and knowledgeable buyer and seller. But, for Debt Securities, it represents the market value of the investments at any point in time when financial statements are being prepared. Investments that are held for trading purposes are required to be accounted for, using the fair value method. This implies that the gains and losses, both realized and unrealized must be accounted for whenever financial statements are bing prepared or when the investment is disposed of.
Kathy is a financial analyst in BTR Warehousing’s. As part of her analysis of the annual distribution policy and its impact on the firm’s value, she makes the following calculations and observations:
• The company generated a free cash flow (FCF) of $87.00 million in its most recent fiscal year.
• The firm’s cost of capital (WACC) is 13%. The firm has been growing at 10% for the past six years but is expected to grow at a constant rate of 8% in the future.
• The firm has 21.75 million shares outstanding.
• The company has $232.00 million in debt and $145.00 million in preferred stock.
Along with the rest of the finance team, Kathy has been part of board meetings and knows that the company is planning to distribute $120.00 million, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Kathy also observed that, at this point, apart from the $120.00 million in short-term investments, the firm has no other nonoperating assets.
Using results from Kathy's calculations and observations, solve for the values in the following tables.
1. Value of the firm's operations.
a. 6,833.33
b.1,366.67
c. 68.33
d.1,421.33
2. Intrinsic value of equity immediately prior to stock repurchase.
a. 888
b. 948
c. 1276
d. 1153
3. Intrinsic stock price immediately prior to the stock repurchase.
a. 28.88
b. 41.50
c. 30.83
d. 37.50
4. Number of shares repurchased
a. 1.56
b. 1.95
c. 2.54
d. 3.32
5. Intrinsic value of equity immediately after the stock repurchase.
a. 888
b. 1306.67
c. 6773.33
d. 1038.67
6. Intrinsic stock price immediately after the stock repurchase.
a. 37.50
b. 30.83
c. 28.88
d. 41.50
Based on you understanding of stock repurchases, identify whether the following statement is true or false:
"The stock price of a firm increases after the firm repurchases some of its shares."
Answer and Explanation:
The computation is shown below.
1. Value of the firm operations is
= Free Cash Flow × (1 + Growth Rate) ÷ (WACC - Growth Rate)
= $87 million × (1 + 8%) ÷ (13% - 8%)
= $1,879.20
This is the answer but the same is not provided in the given options
2. The intrinsic value of equity immediately prior to stock repurchase is
= Value of Firm's Operations + Value of Non Operating Assets - Value of Debt - Value of Preferred Stock
= $1,879.20 + $120 - $232 - $145
= $1,622.20
This is the answer but the same is not provided in the given options
3. The intrinsic stock price immediately prior to stock repurchase is
= Intrinsic Value of Equity Prior to Stock Repurchase ÷ Number of Outstanding Shares
= ($1,622.20) ÷ (21.75 million shares)
= $74.58
This is the answer but the same is not provided in the given options
4. The number of shares repurchased is
= Cash Used for Repurchase ÷ Intrinsic stock price
= $120 ÷ $74.58
= 1.61
This is the answer but the same is not provided in the given options
5. The intrinsic value of equity immediately after stock repurchase is
= Value of Firm's Operations - Value of Debt - Value of Preferred Stock
= $1,879.20 - $232 - $145
= $1,502.20
This is the answer but the same is not provided in the given options
6. The intrinsic stock price immediately after stock repurchase is
= Intrinsic Value of Equity After Stock Repurchase ÷ Number of Outstanding Shares after Repurchase
= ($1,502.20) ÷ (21.75 million shares - 1.61 million shares)
= $74.59
This is the answer but the same is not provided in the given options
This statement is false because if the stock price changes after a firm conducts its share repurchase, then there are arbitrage opportunities. Thus, the price of the stock remains the same after a repurchase
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:Activity Cost Pool Activity Measure Activity RateOrder size Number of direct labor-hours $17.80 per direct labor-hourCustomer orders Number of customer orders $354.00 per customer orderProduct testing Number of testing hours $72.00 per testing hourSelling Number of sales calls $1,488.00 per sales callThe managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 130 direct labor-hours, 11 hours of product testing, and 5 sales calls.Required:Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?Activity Cost Pool ABC CostOrder size Customer orders Product testing Selling Total overhead cost
Answer:
Total Overhead Cost = 10700.00
Explanation:
The required objective here is to :
Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles and What is the total overhead cost assigned to the order?Activity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead cost.
The concept that specifically explains the thesis of this question is called Activity Based Costing
What Activity based costing does is to allocate costs to the activities that are the real cause of the overhead at their initial stage Then, also allocate the cost of those activities only to the products that are specifically demanding the activities.
Now; The Total overhead Cost for the order can be seen as illustrated in the table below.
Serial - Cost - Overhead - Activity (b) ABC Cost (a×b)
Number Center Rate (a)
1 Order size 17.80 130 2314.00
2 Customer order 354.00 1 354.00
3 Product Testing 72.00 11 792.00
4 Selling 1448.00 5 7240.00
Total Overhead Cost 10700.00
Forever Jewelers uses the perpetual inventory system. On April​ 2, Forever sold merchandise with a cost of $ 1 comma 500$1,500 for $ 9 comma 000$9,000 to a customer on account with terms of 22​/15, ​n/30. Which of the following journal entries correctly records the sales​ revenue?
a. Accounts Receivable 6,720
Sales Revenue 6,720
b. Sales Revenue 6,720
Accounts Receivable 6,720
c. Sales Revenue 6,720
Cost of Goods Sold 6,720
d. Accounts Receivable 1,500
Sales Revenue 1,500
Answer:
Accounts Receivable $8,820
To Sales Revenue $8,820
Explanation:
The journal entry to record the sales revenue is shown below:
Accounts receivable A/c Dr $8,820
To Sales revenue A/c $8,820
(Being merchandise sold on credit basis)
For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue
The computation of sales revenue is shown below:
= Sales revenue - discount
= $9,000 - $9,000 × 2%
= $9,000 - $180
= $8,820
This is the answer but the same is not provided in the given options
A company has a policy of paying salaries for contract labor on the 15th of the month following the labor services received. In December 2021, the company recorded $15,000 paid in salaries for labor services received in November 2021. In addition, labor services received in December 2021 were $12,000 and will be paid by the company on January 15, 2022. What adjusting entry will the company record on December 31, 2021? * I really need help with this*
Multiple Choice
a. Debit Salaries Expense and credit Salaries Payable for $3,000.
b. Debit Salaries Expense and credit Cash for $15,000.
c. Debit Salaries Expense and credit Salaries Payable for $12,000.
d. Debit Salaries Expense and credit Salaries Payable for $27,000.
Answer:
c. Debit Salaries Expense and credit Salaries Payable for $12,000.
Explanation:
The journal entry is shown below:
Salaries Expense $12,000
Salaries Payable $12,000
(Being salaries expense is recorded)
For recording this we debited the salaries expense as it increased the expense and credited the salary payable as it also increased the liabilities
According to the accrual basis of accounting, the expenses is recorded when they are incurred
So only $12,000 would be considered
Cabinet Division would like to purchase 11,900 units from the Handle Division at a price of $130 per unit. Handle Division has no excess capacity to handle the Cabinet Division's requirements. The Cabinet Division currently purchases from an outside supplier at a price of $140. If the Handle Division accepts a $130 price internally, the company, as a whole, will be better or worse off by:
Missing information:
Selling price to outside customers $155
Variable cost per unit $70
Fixed cost per unit (based on capacity) $40
Capacity (in units) 62,000
Answer:
the company as a whole will be worse off by $178,500
Explanation:
since the Handle Division has no spare capacity to handle the order from Cabinet Division, it must treat this order as any common sale to an outside client.
outside Cabinet differential
customers Division amount
sales revenue $1,844,500 $1,547,000 ($297,500)
variable costs $833,000 $833,000 $0
fixed costs $476,000 $476,000 $0
total ($297,500)
Handle Division will be worse off by $297,500
Cabinet Division will be better off by = ($140 - $130) x 11,900 = $119,000
net effect on the company = worse off by $178,500
Which crime is BEST represented by the following situation?
Jeff decides that it is time to clean up his act and stop manufacturing drug paraphernalia in his basement. He uses $15,000 from bong pipe sales to open a children’s toy store. The next day, the police bust Jeff for his sale of drug paraphernalia.
A. Robbery
B. Embezzlement
C. Money Laundering
D. Larceny
Answer:
The answer is C. Money Laundering
Explanation:
Solution
From the question stated it can be described as a crime of money laundering.
Money laundering involves the use of illegally obtained money for legitimate purposes.
In this scenario, Jeff uses $15,000 from his illegal sales of drug paraphernalia for setting up a toy store. The origin of the money, which was obtained through illegal method was hidden.
Robbery and larceny are examples of theft that involves stealing items of value from another person. Embezzlement is also a kind of theft. It involves withholding of items with the intention of theft .
The effects of inflation Suppose Friendly Airlines is considering signing a long-term contract with the union representing its pilots. Friendly Airlines and the union both agree that real wages should increase by 2%. Inflation is expected to be 3%, so they agree on a 5% nominal wage increase.
Now, suppose inflation turns out to be lower than expected, coming in at 2%. This would_______ the union and______ Friendly Airlines because the real wage increase would now be______ .
Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicators in order to maximize its financial position. This illustrates the fact that:______
A. Inflation harms lenders and helps borrowers
B. Variable inflation is associated with high transaction costs
C. Inflation obscures relative price changes
Answer:
The lower than expected inflation would benefit the union and not benefit Friendly Airlines.
B. Variable inflation is associated with high transaction costs
Explanation:
Inflation is a persistent rise in the general price levels.
It was expected that inflation would increase by 3% and because of that expectation, wages were increased by 5%.
As it turns out, inflation only increased by 2%. If employers were aware that inflation would increase by only 2%, the increase in income would have been 4%.
As a result of this, the company ends up paying more to workers and workers and up earning more. So, the union benefits while the airline is at a disadvantage.
Because of the uncertainty of inflation, the union dedicates high amount of resources to monitor its movements. This shows that there is a high cost associated with the uncertainty of inflation.
I hope my answer helps you
An analysis of stockholders' equity of Hahn Corporation as of January 1, 2012, is as follows:
Common stock, par value $20; authorized 100,000 shares;
issued and outstanding 93000 shares $1860000
Paid-in capital in excess of par 930000
Retained earnings 762000
Total $3552000
Concord uses the cost method of accounting for treasury stock and during 2021 entered into the following transactions:
Acquired 2460 shares of its stock for $73800. Sold 2000 treasury shares at $35 per share. Sold the remaining treasury shares at $20 per share.
Assuming no other equity transactions occurred during 2012, what should Hahn report at December 31, 2012, as total additional paid-in capital?
Answer:
Assuming no other equity transactions occurred during 2012, what should Hahn report at December 31, 2012, as total additional paid-in capital?
additional paid in capital = $930,000 + $30,000 = $960,000Explanation:
Common stock, par value $20; authorized 100,000 shares; issued and outstanding 93000 shares $1,860,000
Paid-in capital in excess of par $930,000
Retained earnings $762,000
Total $3,552,000
Acquired 2460 shares of its stock for $73800.
Dr Treasury stock 73,800 (paid $30 per stock)
Cr Cash 73,800
Sold 2000 treasury shares at $35 per share.
Dr Cash 70,000
Cr Common stock 40,000 (= $20 x 2,000)
Cr Additional paid in capital 30,000
Sold the remaining treasury shares at $20 per share.
Dr Cash 9,200
Cr Common stock 9,200 (= $20 x 460)
As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so that you can be able to solve real life business problems after graduation. To achieve this objective, the 2020 class has been divided into ten groups; and each team works in a management capacity with ten management consulting companies in the Greater Accra Region. San Consulting - the firm that your group works with is a project management company that is into Real Estate construction and management consulting. This firm which has twenty years’ experience in this business is the first choice for all individuals and companies that want quality service. You have on the contrary, observed that many of the management practices have not developed precipitously as situations in the business environment warrant. The accountant confirmed this by saying in the last general meeting that a certain percentage of San’s profit margin is being lost because of this situation. She gave the example that the surveying department spent eight labor hours generating data that had been generated two weeks ago by another unit. Due to the fact that the surveying department did not know that the data had already been created, a substantial effort was wasted and this has been a recurrent problem. In addition, the increase in demand of the services of San’s Consulting has placed significant pressures on the five managers whose duties are not clearly defined. For instance, you have observed that any of these managers perform duties in the operations department as well as any other unit within the firm. They are not able to perform all the functions required of them due to the ineffectiveness of the organizational structure. You and the members of your group are expected to write a report to the top-level management team regarding your analysis of the situation in the firm.
1. Explain which of the four main management functions is/are not operating as it/they should within the firm? 3 Marks
2. What recommendations will you make in your report that will help assure that this situation or similar one would not happen again? 4 Marks
3. Assume that the top-level management team has accepted your recommendations, how can their effectiveness be evaluated three months after implementation? 4 Marks
4. Discuss the organizational structure currently used by San’s Consulting and would you recommend the continuous use of this structure? If yes or no, present the factors (4) that influenced your decision regarding the right organizational structure for San’s Consulting. 5 Marks
5. Identify and discuss the main problems that the firm is likely to experience (i) if the current structure is continued or (ii) if a new structure is implemented. 5 Marks
Answer:
The organization structure is not clearly defined, Managers are performing duties in various departments at a time.
Explanation:
San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job descriptions is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.
Questions 1: Planning, organizing, leading and controlling
Question 2: The organizational structure needs to be set and every employee should have their defined job role so they are able to complete work with efficiency.
Question 3: The profits of San consulting will rise as there will be less duplication of work and every employee will be able to focus on their own task and will work with efficiency.
Question 4: Matrix. The matrix organizational structure is not suited in this organization. The right organizational structure for San consulting will be Functional Structure.
Question 5: (i) The profits for San Consulting will decline
(ii) The profit will rise because employee will focus more on their specific tasks.
1B. Yes agree. The managers need to focus on the external environment as well to identify the opportunities and threats present which can stimulate changes for the organization.
On January 1, 2017, Tri-State Industries had cash and common stock of $180,000. At that date the company had no other asset, liability or equity balances. On January 2, 2017, it purchased $160,000 of equity securities for cash that it classified as available-for-sale. It received cash dividends of $12,000 during the year on these securities. In addition, it had an unrealized holding gain on these securities of $32,000 net of tax. Based on this information, what is the amount of comprehensive income in 2017
Answer:
$44,000
Explanation:
Tri-State Industries
Comprehensive income can be defined as the income which tend to include holding gain or loss that are yet to be realized.
Unrealized holding gain on securities $32,000
Add Cash dividend received $12,000
Comprehensive income $44,000
Therefore the amount of comprehensive income in 2017 will be $44,000
You are thinking about renting a room in a house next year with three of your friends. For each month’s rent, you are willing to pay $480, your first friend is willing to pay $450, your second friend is willing to pay $560, and your third friend is willing to pay $510. The landlord agrees to offer each of you separate leases but will charge you all the same price: $450.You decide this is a good deal, so you and your friends move in. A couple of months later, you learn from someone who knows the landlord that he would have been willing to rent each room for $400 per month.Part 1:What is the amount of producer surplus per month?PART 2:What is the amount of total consumer surplus per month?PART3:What is the amount of total surplus each month?
Answer:
$200
$200
$400
Explanation:
Producer surplus is the difference between the price of a product and the least price the seller is willing to sell his product.
Producer surplus = price of the product - least price the producer is willing to sell his product
$450 - $400 = $50
Because there are four people , $50 × 4 = $200
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.
My consumer surplus = $480 - $450 = $30
Ist friend = $450 - $450 = 0
2nd friend = $560 - $450 = $110
3rd friend = $510 - $450 = $60
Total surplus = $30 + $110 + $60 = $200
Total surplus is the sum of producer and consumer surplus.
$200 + $200 = $400
I hope my answer helps you
Utilities $16,400 plus $0.14 per machine-hour $ 20,440 Maintenance $39,000 plus $1.60 per machine-hour $ 58,400 Supplies $0.30 per machine-hour $ 4,600 Indirect labor $94,600 plus $1.10 per machine-hour $ 113,100 Depreciation $68,500 $ 70,200 During March, the company worked 14,000 machine-hours and produced 8,000 units. The company had originally planned to work 16,000 machine-hours during March.Complete the report showing the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Complete the report showing the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Answer and Explanation:
a. The Preparation of activity variances for March is presented below:-
Activity variances for March
Particulars Planning Budget Flexible Budget Activity Variances
Machine
hours 16,000 14,000
Utilities $18,640 $18,360 $280 F av.
For Planning budget
($16,400 + ($0.14 × 16,000)) ($16,400 + ($0.14 × 14,000))
Maintenance $64,600 $61,400 $3,200 Fav.
($39,000 + ($1.60 × 16,000)) ($39,000 + ($1.60 × 14,000))
Supplies $4,800 $4,200 $600 Fav.
($0.30 × 16,000) ($0.30 × 14,000)
Indirect labor $112,200 $110,000 $2,200 Fav.
($94,600 + ($1.10 × 16,000) ($94,600 + ($1.10 × 14,000))
Depreciation $68,500 $68,500 0
Total $284,740 $276,460 $8,280 Fav.
b. The Preparation of spending variances for March is presented below:-
Spending variances for March
Particulars Flexible Budget Actual Difference
Machine
Hours $14,000 $14,000
Utilities $18,360 $20,440 $2,080 Unfav.
($16,400 + ($0.14 × 14,000))
Maintenance $61,400 $58,400 $3,000 Fav.
($39,000 + ($1.60 × 14,000))
Supplies $4,200 $4,600 $400 U nfav.
($0.30 × 14,000)
Indirect labor $110,000 $113,100 $3,100 Unfav.
($94,600 + ($1.10 × 14,000)
Depreciation $68,500 $70,200 $1,700 Unfav.
Total $276,460 $280,740 $4,280 Unfav.
For reaching the total we added all the expenses in both spending variance and activity variance.
Which factors are relevant to the time a consumer spends looking at a product on the shelf prior to selection? The article "Effects of Base Price Upon Search Behavior of Consumers in a Supermarket" (J. Econ. Psycho., 2003: 637-652) reported the following data on elapsed time (sec) for fabric softener purchasers and washing-up liquid purchasers; the former product is significantly more expensive than the latter. These products were chosen because they are similar with respect to allocated shelf space and number of alternative brands.
Find the answer and explanation in the attachment
Note: The complete Question is also added in the attachment
Concord Corporation issued 113,000 shares of $19 par value, cumulative, 7% preferred stock on January 1, 2019, for $2,630,000. In December 2021, Concord declared its first dividend of $720,000. (a) Prepare Concord’s journal entry to record the issuance of the preferred stock.
Answer:
(a)
Dr. Cash $2,630,000
Cr. Preferred Stock $2,147,000
Cr. Add-in-Capital excess of par preferred stock $483,000
Explanation:
Preferred stockholders has an advantage that they are paid first when there is any dividend is announced. The residual dividend will be divided into the common stockholders. Any prior years due dividend and current years dividend associated with preferred share will be paid first.
Par value = 113,000 x 19 = $2,147,000
Excess of par value = $2,630,000 - $2,147,000 = $483,000
The total wage expense for Grande Co. was $ 156 comma 000. Of this total, $ 32 comma 000 was above the OASDI wage base limit and not subject to this tax. All earnings are subject to Medicare taxes, and $ 58 comma 000 was above the federal and state unemployment wage base limits and not subject to unemployment taxes. Please calculate and journalize the total payroll tax expense for Grande Co. given the following rates and wage base limits:
Answer:
Dr FICA OASDI (Social Security) tax expense $7,688
Dr FICA Medicare tax expense $2,262
Dr FUTA tax expense $588
Dr SUTA tax expense $5,586
Cr FICA OASDI (Social Security) tax payable $7,688
Cr FICA Medicare tax payable $2,262
Cr FUTA tax payable $588
Cr SUTA tax payable $5,586
Explanation:
Federal unemployment tax 0.6% = ($156,000 - $58,000) x 0.6% = $588
State unemployment tax 5.7% = ($156,000 - $58,000) x 5.7% = $5,586
OASDI 6.2% = ($156,000 - $32,000) x 6.2% = $7,688
Medicare 1.45% = $156,000 x 1.45% = $2,262
On July 1, 2022, Blossom Company sells equipment for $119000. The equipment originally cost $330000, had an estimated 5-year life and an expected salvage value of $50000. The Accumulated Depreciation account had a balance of $196000 on January 1, 2022, using the straight-line method. The gain or loss on disposal is
Answer:
Gain= $13,000
Explanation:
Giving the following information:
Selling price= $119,000.
The equipment originally cost $330000, had an estimated 5-year life, and an expected salvage value of $50000.
The Accumulated Depreciation account had a balance of $196000.
First, we need to calculate the accumulated depreciation on July 1, 2022.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (330,000 - 50,000)/5= $56,000
Depreciation for 2022= (56,000/12)*6= 28,000
Accumulated depreciation= 196,000 + 28,000= $224,000
The gain or loss is determined using the book value:
Book value= 330,000 - 224,000= 106,000
Gain/loss= selling price - book value
Gain/loss= 119,000 - 106,000
Gain= $13,000
On June 30, Year 7, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30, Year 9. Interest was payable semiannually every June 30 and December 31. On June 30, Year 7, after amortization was recorded for the period, the unamortized bond premium was $30,000. On that date, King acquired all its outstanding bonds on the open market at 93 and retired them. At June 30, Year 7, what amount should King recognize as gain before income taxes on redemption of bonds
Answer:
The gain before income taxes on redemption bond is $80,00
Explanation:
Please check the file attached below to see the solution to given question. Thank you
Replace Equipment A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,500 and replace it with a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would reduce annual direct labor costs from $11,200 to $7,400. a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate subtracted or negative numbers or a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 11 Continue with Old Machine (Alternative 1) Replace Old Machine (Alternative 2) Differential Effect on Income (Alternative 2) Revenues: Proceeds from sale of old machine $ $ $ Costs: Purchase price Direct labor (5 years) Income (Loss) $ $ $ b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
Answer:
Replace Equipment:
1. Differential Analysis:
i) Continue with Old Machine (Alt. 1):
Cost of old machine $80,000 $0
Direct labor (5 years) -$56,000
Income (Loss) ($56,000)
ii) Replace Old Machine (Alt. 2)
Differential Effect on Income (Alternative 2)
Proceeds from sale of old machine $50,500
Purchase price for new equipment -$75,000
Direct labor (5 years) -$37,000
Income (Loss) ($61,500)
b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2):
The company should continue with the old machine. Taking Alternative 2 would cost the company $5,500 more than Alternative 1.
Explanation:
Differential analysis or incremental analysis is a management accounting technique which assesses the changes in revenues, costs, and profits that result from a business decision.
Differential cost is the difference in total costs between two acceptable alternative courses of action. Differential revenue is the difference in sales that will be generated by two different courses of action.
In differential analysis, sunk (past) cost is not relevant for decision making. This is why the book value of $80,000 is not considered in the decision of which alternative to take.
The roles and responsibilities of human resource management have evolved primarily because of changes in the law that rewrote many traditional
practices and
Answer:
a) Organizations' recognition of employees as their ultimate resource.
Explanation:
The evolution of the human resources sector in a company had its main milestone from the moment that companies began to be seen as an organic structure.
The changes in the legislation also influenced the evolution of HR, because according to the fact that employees started to have greater legal protection over their labor rights, HR practices were focused on investment in the development of employees' capacities and well-being, in addition to the selection of professionals with ideal personality profiles to assume a position in the company.
Therefore, currently the human resources of a company is geared towards professional training and support to the demands of the employee, as the current business management focused on human capital guarantees advantages of an organizational climate favorable to innovation, a more motivated and more loyal worker, the which guarantees significant strategic advantages in the market.
Answer:
organizations recognize that employees are there ultimate resource
changes in the law have rewritten traditional practices
Explanation:
Omega Healthcare Investors Inc. (ticker symbol on NYSE: OHI) is described as an "equity REIT (real estate investment trust) that supports the goals of skilled nursing facility (SNF) and assisted living facility (ALF) operators with financing and capital." OHI has a relatively high dividend. If OHI is managing its retained earnings to maximize economic profits, a reasonable explanation is that:_____
Answer:
The reasonable explanation is that they are trying to take advantage of government tax incentives which are usually available to companies which retain their earning for investment purposes.
Explanation:
Many governments usually subject distributed profit to corporate tax. When this happens, a huge chunk of profit is eroded. So many companies would rather re-invest their earnings to increase the value of their stock in the secondary market.
The average corporate tax rate in the EU, for instance, is 21.77% whilst the average corporate tax rate in the OECD for is 23.59%.
OECD, by the way, stands for Organisation for Economic Co-operation and Development and the United States of America is a member.
Cheers!
Frank purchased land containing oil reserves for $425,000. He has calculated his cost depletion for the year to be $20 per barrel for a total of $120,000 in depletion expense. He now needs to calculate his percentage depletion in case it is larger. His gross income from the oil extraction is $600,000 and he has $520,000 in operating expenses before depletion expense. Assuming this is domestic production, the amount of percentage depletion expense is $______1 of 3. If he uses this method he can deduct $________2 of 3 for tax purposes. He should use the______3 of 3 depletion method to maximize his deduction.
Answer:
1 of 3. $52,000
2 of 3. $68,000
3 of 3 Percentage depletion
Explanation:
The percentage depletion rate = 15% of gross income and limited to 65% of the net income
The gross income = $600,000
The operating expense = $520,000
The net income = $600,000 - $520,000 = $80,000
Therefore at 15% gross income, we have;
Percentage depletion rate = $600,000 × 0.15 = $90,000
65% of the net income gives;
$80,000 × 0.65 = $52,000
1 of 3. Therefore since 15% of the gross income ($90,000) > 65% of the net income($52,000), we have
The percentage depletion rate = $52,000
2 of 3. Therefore, he can deduct $120,000 - $52,000 = $68,000
3 of 3 He should therefore use the percentage depletion method to maximize his deductions
We therefore have;
Assuming this is domestic production, the amount of percentage depletion expense is _$52,000_. If he uses this method he can deduct _$68,000_ for tax purposes. He should use the _percentage depletion_ method to maximize his deductions.
Which of the following gives computers the ability to understand unpredictable language, based on the way humans speak and write? Machine learning Deep learning Natural language processing Computer vision Narrow AI
Answer:
AI (Artificial Intelligence)
Explanation:
In computer science is sometimes known as machine intelligence. It is not like natural intelligence which has been displayed by human beings and by animals naturally.
It is different from natural intelligence. The artificial intelligence is considered to be the academic discipline. There is a traditional problem with AI-related to knowledge, reasoning, planning and learning, and the ability to manipulate and move on.
The AI contains statistical methods, computational methods, etc. This intelligence is created just because it simulates human intelligence.
This problem will give you some practice working with financial statements and figuring cash flow. Based on the following information for Mara Corporation, prepare an income statement for 2018 and balance sheet for 2017 and 2018. Next, calculate cash flow from assets, cash flow to creditors, and cash flow to stockholders for Mara for 2018. Use a 21 percent tax rate throughout.
2017 2018
Sales 4,203 4,507
Cost of goods sold 2,422 2,633
Depreciation 785 952
Interest 180 196
Dividends 275 352
Current assets 2,205 2,429
Net fixed assets 7,344 7,650
Current liabilities 1,003 1,255
Long-term debt 3,106 2,085
Answer:
Mara Corporation
a) Income Statement for the year 2018:
Sales $4,507
Cost of goods sold 2,633
Gross profit $1,874
Depreciation -952
Interest -196
Income before tax $726
Tax (21% of $726) -152
Net Income $574
Retained Earnings 370 (2017)
Dividends -352
Retained Earnings $592
b) Balance Sheet for 2017 and 2018
Current assets $2,205 $2,429
Net fixed assets 7,344 7,650
Total Assets $9,549 $10,079
Current liabilities $1,003 $1,255
Long-term debt 3,106 2,085
Retained Earnings 370 592
Common Stock * 5,070 6,147
Total Liab.+Equity $9,549 $10,079
Common Stock figures have been obtained as balancing figures.
c) Calculation of Cash Flow in 2018:
i) From Assets:
Increases in Current Assets -$224
Increases in Fixed Assets -306
Total assets cash outflow $530
ii) To creditors:
Increases in Current Liabilities = $252
Decreases in Long-term debt = -1,021
Total creditors cash outflow $769
iii) To stockholders:
Increases in Dividends = $352
Explanation:
a) 2017 Income Statement:
Sales $4,203
Cost of goods sold 2,422
Gross profit $1,781
Depreciation -785
Interest -180
Income before tax $816
Tax (21% of $726) -171
Net Income $645
Dividends -275
Retained Earnings $370
b) Cash flow to stockholders is the amount of cash that a company pays out to its shareholders in the form of cash dividends. Stock dividends are not cash flow to stockholders.
Which of the following sentences use apostrophes correctly? 1. We used to back up our account files weekly and save them onto CD’s. 2 .The financial planner’s e-mail address was listed on his website. 3. Him recording's every conversation made his coworkers suspicious. 4. Making certain that all the timecards were submitted on time was Lorice’s responsibility.
Answer:
2. The financial planner’s e-mail address was listed on his website.
4. Making certain that all the timecards were submitted on time was Lorice’s responsibility.
Explanation:
The apostrophe (') is a punctuation mark used in English language to form possessive nouns, mark the omission of one or more letters and to indicate the plurals of letters in lowercases.
For example, forming a possessive noun; add an Apostrophe (') with the letter "s" i.e ('s) to nouns that don't end with "s" sound. Also, you can add only an Apostrophe (') without the letter "s" to nouns that ends with "s" sound.
For instance, the financial planner’s e-mail address was listed on his website, the writer's pen, the cat's eyeballs etc.
To indicate the omission of a letter (contraction), such as isn't, don't they're, I've, you're, doesn't, you've, they'd etc.
Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie's Farms is the only company that grows fresh apricots, while Darryl's Dried Victuals is the only producer of dried apricots. Fannie's sells some of its apricots directly to consumers for consumption. The relevant revenue and cost information for each of the two firms in the economy is given below: Darryl's Dried Victuals Revenue from selling dried apricots: Cost of buying fresh apricots from Fannie's: Interest on funds borrowed to buy drying racks: Wages paid to employees Taxes $2,750,000 1,800,000 200,000 550,000 90,000 Fannie's Farms Revenue from selling fresh apricots: Rent on land (including apricot trees) Wages to employees Taxes $2,350,000 400,000 1,100,000 180,000 Darryl's profit from selling dried apricots is:_________.A) $5,390,000 B) $110,000 C) None of these are correct D) $150,000 E) $670,000
Answer:
$110,000
Explanation:
Profit = Total revenue - Total cost
Total revenue = $2,750,000
Total cost = cost of purchase + interest + wages + taxes
= $1,800,000+$200,000+ 550,000 + 90,000 = $2,640,000
Profit = $2,750,000 - $2,640,000 = $110,000
I hope my answer helps you
Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit.
Answer:
Deposited amount will decrease by 1% and $2,000
Explanation:
Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.
We will use following formula to calculate the impact
Nominal rate = Real interest rate + Inflation rate
5% = Real interest rate + 6%
Real interest rate = 5% - 6% = -1%
The deposited amount will be decreased by 1%.
Deposit value = $200,000 x ( 1 - 1% ) = $198,000
Decrease in value = $200,000 - $198,000 = $2,000
Which journal entry reflects the adjusting entry needed on December 31?:In November, BOC received a $5,000 cash deposit from a customer for custom-build goods that will be delivered in January (BOC recorded an entry for this $5,000 in November). Now, it is December 31, the end of the fiscal year.Dr. Unearned Revenue 5,000Cr. Inventory 5,000No entry needed.Dr. Cash 5,000Cr. Revenue 5,000Dr. Advances from Customers 5,000Cr. Revenue 5,000Dr. Unearned Revenue 5,000Cr. Revenue 5,000
Answer:
No adjusting entry required
Explanation:
When the contract was formed and advance was received the company must had recorded the following entry:
Dr Cash Account $5000
Cr Unearned Revenue $5000
Now it is the year end and till now the goods are not delivered which means advance that was received is still our unearned revenue So no further entry is required until the delivery of the goods ordered to the customer.
Correct entry is "No adjusting entry required"
