Answer:
$150,000
Explanation:
Computation for the amount of accounts receivable to be reported on the company's budgeted balance sheet for August.
First step
Total sales of August = 0.25 × $200,000
Total cash sales = $50,000
Last step
Total credit sales for the month of August = Total sales in August - Total cash sales in August
Total credit sales for the month of August= $200,000 - $50,000
Total credit sales for the month of August= $150,000
Therefore the amount of accounts receivable to be reported on the company's budgeted balance sheet for August is $150,000
Julie Lambert has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Lambert account for the cash received at the end of the engagement?
a.Cash
Unearned Consulting Revenue
b.Cash
Unearned Consulting Revenue
Earned Consulting Revenue
c. Prepaid Consulting Revenue
Earned Consulting Revenue
d. No entry is required when the engagement is concluded.
Answer:
b. Cash, Unearned Consulting Revenue; Earned Consulting Revenue
Explanation:
Lambert account for the cash received at the end of the engagement as stated below
Date Account titles Debit Credit
Cash XXX
Unearned Consulting Revenue XXX
Earned Consulting Revenue XXX
If Jackson Collectibles, Inc. has a safety stock of 35 units and the average weekly demand is 14 units, how many days can be covered if the shipment from the supplier is delayed?
A) 2.5 days
B) 17.5 days
C) 21 days
D) 35 days
E) 7.0 days
Answer: B. 17.5 days
Explanation:
The safety stock that Jackson Collectibles has is 35 units.
Their weekly demand however is 14 units.
This means that the number of weeks they can survive on safety stock is:
= Safety stock / demand per week
= 35 / 14
= 2.5 weeks
In days this is:
= 2.5 * 7
= 17.5 days
If sales are $798,000, variable costs are 72% of sales, and operating income is $258,000, what is the contribution margin ratio?
a. 72%
b. 68%
c. 28%
d. 32%
Following are selected accounts for a manufacturing company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS). If an item will not appear on either budgeted financial statement, write it NA.
a. Sales
b. Administrative salaries paid
c. Accumulated depreciation
d. Depreciation expense
e. Interest paid on bank loan
f. Cash dividends paid
g. Bank loan owed
h. Cost of goods sold
Answer: See explanation
Explanation:
The budgeted income statement is a financial report that lists the estimated revenue, expenses as well as the profit for a given period.
The budgeted balance sheet simply shows the predicted amounts for the assets, liabilities and the equity of a company at the end of the budgeting period.
a. Sales = Budgeted income statement
b. Administrative salaries paid = Budgeted income statement
c. Accumulated depreciation =
Budgeted balance sheet
d. Depreciation expense = Budgeted income statement
e. Interest paid on bank loan = Budgeted income statement
f. Cash dividends paid = N/A
g. Bank loan owed = Budgeted balance sheet
h. Cost of goods sold = Budgeted income statement
Estimated inventory (units), March 1 17,000 Desired inventory (units), March 31 19,700 Expected sales volume (units): Area M 6,500 Area L 8,900 Area O 7,800 Unit sales price $15 The number of units expected to be manufactured in March is a.23,200 b.59,900 c.25,900 d.42,900
Answer:
c.25,900
Explanation:
The computation of the no of units expected to be manufactured is given below:
No of units manufactured is
= No. of units sold + Closing units - Opening units
= (6,500 + 8,900 + 7,800) + 19,700 - 17,000
= 25,900
Hence, the no of units expected to be manufactured is 25,900
Therefore the option c is correct
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction house sold a painting for a price of $1,080,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,660,000.
What was his annual rate of return on this painting? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer: -13.35%
Explanation:
Based on the information given in the question, the annual rate of return on this painting will be calculated thus:
Sales price of painting = $1,080,000
Cost price of painting = $1,660,000
The sales Price formula is given as
= Cost price × (1 +r)³
1080000 = 1660000 × (1+r)³
1,080,000/1,660,000 = (1+r)³
0.65 = (1 + r)³
Annual rate of return r will now be:
= 0.6506^⅓ - 1
= -13.35%
Otobai Motor Company just paid a dividend of $1.40. Analysts expect its dividend to grow at a rate of 18 percent for the next three years and then a constant rate of 5 percent thereafter. What is the expected dividend per share at the end of year 5?
a. $2.35.
b. $2.54.
c. $2.91.
d. $1.50.
Answer:
b. $2.54.
Explanation:
The computation of the expected dividend per share at the end of year 5 is shown below:
= Dividend per share × (1 + growth rate)^number of years × (1 + growth rate)^remaining years left
= 1.40 × (1+18%)^3 × (1 + 5%)^2
= $2.54
hence, the expected dividend per share at the end of year 5 is $2.54
American Delights manufactures a wide variety of holiday and seasonal decorative items. American's activity-based costing overhead rates are:
Purchasing $380 per order
Storing $2 per square foot/days
Machining $100 per machine hour
Supervision $5 per direct labor hour
The Snow Man project involved three purchase orders, 4,000 square feet/days, 60 machine hours, and 40 direct labor hours. The cost of direct materials on the job was $19,000 and the direct labor rate is $30 per hour.
Determine the total cost of the Snow Man project.
Answer:
Total cost= $34,780
Explanation:
First, we need to allocate costs to Snow Man project:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Purchasing= 380*1= 380
Storing= 2*4,000= 8,000
Machining= 100*60= 6,000
Supervision= 5*40= 200
Total allocated costs= $14,580
Now, the total costs:
Total cost= 19,000 + 30*40 + 14,580
Total cost= $34,780
Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $4,000 each. Variable selling expenses are $230 per ATV. The remaining selling expenses are fixed. Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,880 each.
POLARIX
Income Statement—Consumer ATV Department
For Year Ended December 31, 2017
Sales $619,200
Cost of goods sold 311,320
Gross margin 307,880
Operating expenses
Selling expenses $160,000
Administrative expenses 42,500 202,500
Net income $105,380
Required:
1. Prepare an income statement for this current year using the contribution margin format.
2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income?
Ticketsales, Inc., receives $7,720,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts.
View transaction list Journal entry worksheet Record the concert revenues earned. Note: Enter debits before credits. Debit Credit General Journal Date Nov 05
Answer:
When revenue has been received but the service has not been rendered, the revenue will not be recognized and will instead be treated as a liability called unearned revenue.
Date Account Title Debit Credit
Oct. 31 Cash $7,720,000
Unearned Ticket revenue $7,720,000
Date Account Title Debit Credit
Nov. 5 Unearned Ticket Revenue $1,930,000
Ticket Revenue $1,930,000
Working
Ticket revenue = 1/4 * 7,720,000
= $1,930,000
Zeke's Soda is a small company. They have never grown much, but they have never quite gone out of business over their 75 year history.They have a secret recipe for a raspberry soda which is their bestselling drink. It has never been patented, but it has been known only to the family members who run the company ever since Old Zeke came up with it 75 years ago. None of the other employees have access to it.
Soda Giant buys a bottle of Zeke's Soda and runs it through sophisticated equipment that is able to analyze it and determine all of the ingredients. Soda Giant takes what it learns and starts to make and sell a soda identical to Zeke's.Can Zeke's Soda win a trade secret misappropriation action?
a) No, because a secret recipe is not the kind of thing that can be a trade secret.
b) No, because the trade secret protection has expired.
c) No, because Soda Giant did not misappropriate the information.
d) Yes.
Answer:
it is definitely a
hoakqaaa
Examine the following transaction: Dr. Accounts Receivable 4100 Cr. Allowance for Doubtful Accounts 4100 Dr. Cash 4100 Cr. Accounts Receivable 4100 2 points: What would be an appropriate journal entry descriptions for this transactions
Answer:
The appropriate journal entry descriptions for this transaction are:
Journal Entries:
Dr. Accounts Receivable 4100
Cr. Allowance for Doubtful Accounts 4100
To reverse accounts written-off as uncollectible.
Dr. Cash 4100
Cr. Accounts Receivable 4100
To record the cash receipts from the previously written-off accounts.
Explanation:
a) Data and Analysis:
Dr. Accounts Receivable 4100
Cr. Allowance for Doubtful Accounts 4100
Dr. Cash 4100
Cr. Accounts Receivable 4100
At December 31, Folgeys Coffee Company reports the following results for its calendar year.
Cash sales $918,000
Credit sales 318,000
Its year-end unadjusted trial balance includes the following items.
Accounts receivable $143,000 debit
Allowance for doubtful accounts 6,800
Required:
Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 5% of credit sales, (2) 3% of total sales and (3) 8% of year-end accounts receivable.
Answer:
1. Dr Bad debts expense $15,900
Cr Allowance for Doubtful Accounts $15,900
2. Dr Bad debts expense $37,080
C Allowance for Doubtful Accounts $37,080
3. Dr Bad debts expense $18,240
Cr Allowance for Doubtful Accounts $18,240
Preparation of the adjusting entry to record bad debts expense
1. Dr Bad debts expense $15,900
Cr Allowance for Doubtful Accounts $15,900
(318,000*5%)
2. Dr Bad debts expense $37,080
C Allowance for Doubtful Accounts $37,080
[(918000+318,000)*3%]
3. Dr Bad debts expense $18,240
Cr Allowance for Doubtful Accounts $18,240
[(143,000*8%) + 6800]
What is the difference between independent and dependent demand. Group of answer choices independent iemand is based on market forces while Dependent demand is based on production schedule dependent demand is what determines independent demand independent demand is based on dependent demand dependent demand is based on sales while independent demand is based on management decisions
Answer:
independent demand is based on market forces while Dependent demand is based on production schedule
Explanation:
Independent demand is the demand for a finished product bought by a consumer e.g. the demand for a textbook by a student
independent demand is based on market forces e.g. the price of the good
Consumers would be more willing to purchase a good that is cheaper compared to other goods
Dependent demand is the demand for the factors of productions that are needed in the production of the final good or service. e.g. the demand for labour , purchase of inventory needed to produce a good
If consumers do not demand for the finished product, there would be no demand for the inventory
A company changes from the straight-line method to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change will include a
Answer: c. credit to Accumulated Depreciation.
Explanation:
When using the accelerated method of depreciation, depreciation amounts are higher in the earlier years unlike the straight-line method where depreciation is constant throughout the life of the asset.
The difference between the depreciation according to Straight-line and depreciation will be sent to the accumulated depreciation account as a credit to reflect the change and the depreciation for the period.
Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon rate of 7 percent and matures 13 years from now. If the current market rate for this type and quality of bond is 7.5 percent, then Rosina should expect: the bond issuer to increase the amount of all future interest payments. the yield to maturity to remain constant due to the fixed coupon rate. to realize a capital loss if she sold the bond at today's market price. today's market price to exceed the face value of the bond. the current yield today to be less than 7 percent.
Answer:
to realize a capital loss if she sold the bond at today's market price.
Explanation:
Given that
NPER is 13
RATE is 7.5%
PMT is 7% of $1,000
Future value be $1,000
We need to find out the present value
So,
The current price of the bond is:
=PV(7.5%,13,7%*1000,1000)
=$959.37
Now if she wants to sell the bond now, so the value should be less than the face value due to which there should be the capital loss
Read the opening story about Dunkin Donuts and identify at least three types of marketing research that Dunkin used. Fully explain if it is qualitative or quantitative research?
Answer:
Dunkin Donuts has always tried to maintain its currents customers and attract potential customer through their marketing strategies. Since the company has limited products to offer it has to be very keen on their marketing strategies to make their product successful. The company uses undifferentiated target marketing strategies so that its simple menu is available globally.
Explanation:
The old name of Dunkin Donuts was Open kettle. The company mainly focused on Donuts and Coffee. It has simple yet attractive menu since it specializes in Donuts and none of the competitors have been successful till date to offer Donuts with exact taste like Dunkin Donuts. The company struggles to promote its brand globally. The company has been successful to serve its customers in 40+ countries.
Tamarisk, Inc. issued 20800 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $50000 and issued long-term notes payable of $458000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows
Answer:
$1,240,000
Explanation:
Calculation to determine the amount of cash flows from financing activities will be reported on the statement of cash flows
Cash flow from Financing activities
Issue of common stock $832,000
(20800 shares × $40)
Add Issued of long term notes payable $458,000
Less: Dividend paid -$50,000
Net Cash flow from Financing activities $1,240,000
Therefore the amount of cash flows from financing activities will be reported on the statement of cash flows is $1,240,000
Which points on the production possibilities curve show a level of production
that would be achievable only through further growth in the company?
A. Points B and C
B. Points A and C
C. Points B and D
O D. Points A and B
Answer:
Most likely d and b
Explanation:
d is the best production so it should be in one of the answers and it is only with b so therfor it should be with d and b
Answer:
points a and c
Explanation:
Kaspar Industries expects credit sales for January, February, and March to be $220,000, $260,000, and $300,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.
Compute cash collections from customers for each month.
Collections from customers
Credit Sales January February March
January $ $ $
February
March
$ $ $
Answer:
January collections:
= 75% * January credit sales
= 75% * 220,000
= $165,000
February collections:
= (75% * February collections) + (25% * January collections)
= (75% * 260,000) + (25% * 220,000)
= $250,000
March collections:
= (75% of March collections) + (25% * February collections)
= (75% * 300,000) + (25% * 260,000)
= $290,000
TB MC Qu. 08-156 Fortune Drilling Company acquires... Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined
Answer:
Fortune Drilling Company
Journal Entry:
Debit Depletion Expense $1,350,000
Credit Accumulated Depletion $1,350,000
To record the first year's expense.
Explanation:
a) Data and Calculations:
Acquisition cost of mineral deposit = $5,900,000
Additional costs incurred = $600,000
Total costs of mine = $6,500,000
Estimated mineral deposit = 2,000,000 tons
Estimated years of extraction = 5 years
First year's extraction quantity = 418,000
Expenses for the first year = 418,000/2,000,000 * $6,500,000
= $1,350,000
Analysis:
Depletion Expense $1,350,000 Accumulated Depletion $1,350,000
Entry for Jobs Completed; Cost of Unfinished Jobs
The following account appears in the ledger prior to recognizing the jobs completed in August:
Work in Process
Balance, August 1 $8,920
Direct materials 72,520
Direct labor 78,230
Factory overhead 41,120
Jobs finished during August are summarized as follows:
Job 210 $36,140
Job 216 22,090
Job 224 42,170
Job 230 78,310
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at August 31.
$
Answer:
a. Journal Entry to record the jobs completed:
Debit Finished Goods Inventory $178,710
Credit Work in Process $178,710
To record the jobs completed.
b. The cost of the unfinished jobs at August 31 is:
= $23,080
Explanation:
a) Data and Analysis:
Work in Process
Account Titles Debit Credit
Balance, August 1 $8,920
Direct materials 72,520
Direct labor 78,230
Factory overhead 41,120
Finished goods inventory $178,710
Balance (unfinished jobs) 23,080
Total $201,790 $201,790
Jobs finished during August are summarized as follows:
Job 210 $36,140
Job 216 22,090
Job 224 42,170
Job 230 78,310
Total $178,710
a. Journal Entry Analysis to record the jobs completed:
Finished Goods Inventory $178,710 Work in Process $178,710
b. The cost of the unfinished jobs at August 31 is:
= Total of work in process Minus Finished Goods
= $201,790 - $178,710
= $23,080
A firm operated at 80% of capacity for the past year, during which fixed costs were $198,000, variable costs were 66% of sales, and sales were $1,082,000. Operating profit was a.$367,880 b.$714,120 c.$169,880 d.$135,904
Answer: $169,880
Explanation:
Operating profit for a company is simply its sales less its fixed costs and variable costs:
Operating profit = Sales revenue - Variable costs - Fixed costs
Variable costs:
= 66% * 1,082,000
= $714,120
Operating profit:
= 1,082,000 - 714,120 - 198,000
= $169,880
Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 244 were sent to customers; Jobs 245, 247, and 248 were completed and sent to finished goods. What is the cost of goods sold for the month
Answer:
The cost of goods sold for the month is:
= $10,730.
Explanation:
a) Data and Calculations:
Finished goods inventory at the beginning of the month:
Job 243 $5,750
Job 244 $4,980
Work in process inventory at the beginning of the month:
Job 245 $3,675
Job 246 $4,250
Jobs started during the month:
Job 247 $5,100
Job 248 $3,800
Cost of goods sold:
Job 243 $5,750
Job 244 $4,980
Total $10,730
Finished Goods inventory ending balance:
Job 245 $3,675
Job 247 $5,100
Job 248 $3,800
Work in Process inventory ending balance:
Job 246 $4,250
The common stock of Eddie's Engines, Inc. sells for $45.68 a share. The stock is expected to pay $4.10 per share next year. Eddie's has established a pattern of increasing their dividends by 6.2 percent annually and expects to continue doing so. What is the market rate of return on this stock?
a. 15.18 percent
b. 7.26 percent
c. 8.98 percent
d. 17.67 percent
e. 11.14 percent
Answer:
no entiendo la verdad es que yo hablo español y no entiendo ajaj espero te ayude
Explanation:
15.18
Slotnick Chemical received $280,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits
Answer:
$7,000
Explanation:
The computation of the profit that should realize on the forfeited deposits is given below:
Deposited forfeited is
= $280,000 ×15%
= $42,000
Now the cost of the discount forfeited is
= $42,000 ÷ (100 + 20%$)
= $35,000
So, the profit realized is
= $42,000 - $35,000
= $7,000
The role of the financial manager is closely related to three main cash-related activities: Financing Investing Operating.
a. True
b. False
Answer:
b. False
Explanation:
The role of financial manager has different perspectives, ensuring that the required funding for positive NPV projects is available such that the firm can increase its shareholders' wealth by investing in profitable investment opportunities.
Investing means when the funds are made available , the manager must priotize those projects with higher opportunities over those with lower growth opportunities.
Lastly, the financial manager is responsible for dividend decisions, what fraction of earnings should be paid out to shareholders as dividends)not operating decisions)
Over a certain period, large-company stocks had an average return of 12.34 percent, the average risk-free rate was 2.53 percent, and small-company stocks averaged 17.25 percent. What was the risk premium on small-company stocks for this period
Answer: 14.72%
Explanation:
Risk premium is the amount of return that an investment provides over the risk free return of the market. This is to cater for the higher risk that an investor would incur for investing in the stock.
Risk premium for small company stocks = Average return for small stocks - Risk free rate
= 17.25% - 2.53%
= 14.72%
The following data come from the financial records of Campbell Corporation for Year 3: Sales $ 840,000 Interest expense 5,000 Income tax expense 25,500 Net income 25,500 Required How many times was interest earned in Year 3
Answer:
the times was interest earned in Year 3 is 11.2 times
Explanation:
The computation of the times interest earned ratio is given below:
The times interest earned ratio is
= (Net income+ Income tax expense+ Interest expense) ÷ Interest expense
= ($25,500 + $25,500 + $5,000) ÷ $5,000
= 11.2 times
Hence, the times was interest earned in Year 3 is 11.2 times
The same is to be relevant
Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ Estimated beginning inventory 29,000 units 18,500 units Desired ending inventory 34,800 units 15,100 units Region I, anticipated sales 344,000 units 273,000 units Region II, anticipated sales 192,000 units 143,000 units The unit selling price for product XXX is $5 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is a.416,000 units b.412,600 units c.599,800 units d.431,100 units
Answer:
The correct option is b.412,600 units.
Explanation:
Given:
Product XXX Product ZZZ
Estimated beginning inventory 29,000 units 18,500 units
Desired ending inventory 34,800 units 15,100 units
Region I, anticipated sales 344,000 units 273,000 units
Region II, anticipated sales 192,000 units 143,000 units
Therefore, we have:
Estimated beginning inventory for product ZZZ = 18,500 Units
Desired ending inventory for product ZZZ = 15,100 Units
Total anticipated sale at regions I and II= Region I, anticipated sales + Region II, anticipated sales = 273,000 + 143,000 = 416,000 units
Budgeted production for product ZZZ during the month = Total anticipated sale at regions I and II + Desired ending inventory for product ZZZ - Estimated beginning inventory for product ZZZ = 416,000 + 15,100 - 18,500 = 412,600 units
Therefore, the correct option is b.412,600 units.
