Answers
Answer: 20.99
Explanation:
The optimal bison-killing tax is 20.99
Before the optimal bison-killing tax (per bison) is gotten, we had to calculate the optimum amount of killing first which is represented by b.
After b has been gotten, the value of b was 19.1 and this was slotted into the tax in order to get the value of t.
The analysis and explanation has been attached below
Related Questions
Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment’. Do you agree or not? Justify using practical examples
Answers
Answer:
For a particular organization to be successful it needs to pay attention to forces and external environments, hence I agree
Example a competitor upgrading it Software and hardware will be a force or external attack to another firm whom Had not.
On May 9, 2017, Calvin acquired 250 shares of stock in Hobbes Corporation, a new startup company, for $68,750. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2019, Calvin sold all of his Hobbes stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale. If an amount is zero, enter "0". As a result of the sale, Calvin has: Ordinary loss: $ Short-term capital loss: $ Long-term capital loss: $
Answers
Answer:
Ordinary Loss: $50,000
Short Term Capital Loss : 0
Long Term Capital Loss : $11,750.
Explanation:
The objective of this question is to determine his tax consequences as a result of this sale
From the question given ; the result of the sale which Calvin possess is as follows:
Ordinary Loss: The Ordinary loss is said to be limited to $50,000 for individual. ( According to Section 1244 ; the section give opportunities for losses from sale of shares of small and domestic corporations to be deducted as ordinary losses instead of as capital losses up to a maximum of $50,000 for individual .)
Short Term Capital Loss is said to be zero If it's one year or less.
Long Term Capital Loss is $11,750. How obtained this desired output of $11,750 is as a result of the following:
We know that :
Value of shares Acquired $68,750
Calvin sold all of his Hobbes stock for $7,000 (i.e the selling price rate)
Also , the Ordinary loss = $50,000
Therefore :
Value of shares Acquired = $68,750 - $7,000 - $50,000 = $11,750
Tiberius Manufacturing is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $ 11 comma 600 comma 000 $ 480 comma 000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $ 2 comma 320 comma 000 $ 95 comma 000 Residual value $ 54 comma 000 $ 24 comma 000 Depreciation method Straightminusline Straightminusline Required rate of return 14% 14% Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two decimal places.)
Answers
Answer:
1.51%
Explanation:
The computation of the accounting rate of return is shown below:
Accounting rate of return = Average annual profit ÷ average investment
where,
Average annual profit is
= Estimated annual net cash inflows for 5 years - annual depreciation
= $95,000 - ($480,000 - $24,000) ÷ 5 years
= $95,000 - $91,200
= $3,800
And, the average annual investment is
= (Initial Investment + Scrap Value) ÷ 2
= ($480,000 + $24,000) ÷ 2
= $252,000
Now placing these values to the above formula
So, the accounting rate of return is
= $3,800 ÷ $252,000
= 1.51%
Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:
Job 11-101 $3,880
Job 11-102 2,630
Job 11-103 2,080
Job 11-104 3,190
Job 11-105 2,080
Factory supervision 1,800 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $22 per direct labor hour. The direct labor rate is $18 per hour.
Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Answers
Answer:
Explanation:
Job 11-101=$3,880
Job 11-102= $2,630
Job 11-103= $2,080
Job 11-104= $3,190
Job 11-105= $2,080
Total 13,860
Direct labor rate = $18
Predetermined overhead rate = $22
Direct labor hour = 13,860/18 = 770 hours
Applied factory overhead rate = 770 *22 = $16,940
Factory labor cost
Dr Cr
Work in progress 13,860
Factory Overhead 18,000
Wages payable 31,860
Factory Overhead
Work in progress 16,940
Factory overhead 16,940
Fowler, Inc., just paid a dividend of $2.75 per share on its stock. The dividends are expected to grow at a constant rate of 6.5 percent per year, indefinitely. Assume investors require a return of 11 percent on this stock.
a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What will the price be in three years and in fifteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answers
Answer:
Stock price now is $65.08
Stock price in 3 years is $78.61
Stock price in 15 years is $ 167.38
Explanation:
The current price of the stock is given by the stock price formula below:
stock price=Di*(1+g)/k-g
Di is the dividend just paid of $2.75 per share.
g is the growth rate of dividend of 6.5%
k is the investors' expected return of 11%
stock price=$2.75*(1+6.5%)/(11%-6.5%)=$ 65.08
In calculating stock price in 3 and 15 years,we use the future value formula
FV=PV*(1+r)^n
PV is the current price
r is the growth rate whereas the n is the number of years
Stock in 3 years=$65.08*(1+6.5%)^3=$78.61
Stock in 15 years=$65.08*(1+6.5%)^15=$ 167.38
Sarah works for a company that has offered a promotion if she is willing to relocate. Sarah accepts the position and puts her house on the market right away. She sells her house the first day that the realtor holds an open house. The buyer agrees to pay cash for the full purchase price of the house. Sarah is thrilled, except that it means that she will have to put her furniture in storage until she finds another house in her new city. She enters into a written contract with Safe Storage, Inc. The agreement includes a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage results from Safe Storage's negligent acts. Because of Self Storage's negligence, a fire destroys the warehouse and all of its contents, including Sarah's household goods and furniture. Sarah claims that Safe Storage, Inc. is liable for the full value of the contents, which is approximately $10,000. Is Sarah correct
Answers
Answer: Yes, because storage warehouses are strictly liable for loss or damage, regardless of fault and regardless of exculpatory clauses.
Explanation:
An exculpatory clause is a contract between two parties that relieves one party of liability if damages are caused during the execution of the contract. The party issuing the exculpatory clause is the one looking to be relieved of any potential liability. exculpatory clauses can also be rejected when they are unreasonable.
In this scenerio Sarah is right because storage warehouse are usually liable for loss or damages of goods regardless of a pre agreed exculpatory clause.
Purchases Transactions Nieman Company purchased merchandise on account from Springhill Company for $9,900, terms 2/10, n/30. Nieman returned merchandise with an invoice amount of $2,400 and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar.
Answers
Answer:
$7,350
Explanation:
The terms 2/10, n/30 indicates that the customer would get a 2% discount if the discount is made within 10 days. If the payment is not made in this period, the customer would have to pay the complete amount within 30 days. Taking this into consideration and as Nieman returned merchandise with an invoice amount of $2,400, you have to subtract this amount from the purchased they made:
$9,900-$2,400= $7,500
Then, you have to calculate the 2% of $7,500 to find the discount and subtract it from $7,500:
$7,500*2%= $150
$7,500-$150= $7,350
According to this, if Nieman Company pays the invoice within the discount period, the amount of cash required for the payment is: $7,350.
Patterson Brothers recently reported an EBITDA of $5.5 million and net income of $1.5 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization
Answers
Answer:
Depreciation & amortization = $1 million
Explanation:
The EBITDA is the earning of the company before interest, tax and depreciation and amortization deduction.
To calculate the Net Income from EBITDA, we subtract the charges for depreciation, amortization, interest and taxes.
Thus, net income is,
Net income = EBITDA - Depreciation & amortization - Interest - Tax
The tax is deducted from EBT which is earnings before tax. It is calculated by deducting the depreciation & amortization and interest from EBITDA. Thus, after deducting tax from EBT, we get net income. We can say that if tax is 40% it means that tax is 40% of EBT and net income is the remaining 60% of EBT.
Thus, if 60% of EBT is 1.5 million, then total EBT is,
EBT = 1.5 / 0.6 = $2.5 million
So, tax is = 2.5 * 0.4 = $1 million
Plugging in the values available in the net income formula,
1.5 = 5.5 - Depreciation & amortization - 2 - 1
1.5 + Depreciation & amortization = 5.5 - 3
Depreciation & amortization = 2.5 - 1.5
Depreciation & amortization = $1 million
In September 2008, the IRS changed tax laws to allow banks to utilize the tax loss carryforwards of banks they acquire to shield their future income from taxes (prior law restricted the ability of acquirers to use these credits). Suppose Fargo Bank acquires Covia Bank and with it acquires $ 74$74 billion in tax loss carryforwards. If Fargo Bank is expected to generate taxable income of $ 10$10 billion per year in the future, and its tax rate is 30 %30%, what is the present value of these acquired tax loss carryforwards given a cost of capital of 8 %8%?
Answers
Answer:
The present value of these acquired tax loss is $15.81 billion
Explanation:
We can shield $ 10 billion for the next 7 years and $4 billion in the 8th year
Given the tax rate = 30%
Years 1 - 7, tax savings = $ 3 billion
Year 8, tax savings = $1.2 billion
Present value (PV) = 3 × [tex]\frac{1}{0.08} \{1-\frac{1}{1.08^7} \}[/tex] + [tex]\frac{1.2}{1.08^8}[/tex]
= 3 × 12.5(1-0.58) + 0.648
= 3 × 5.25 + 0.648
= 15.75 + 0.648
= $ 15.81 billion
Therefore, the present value of these acquired tax loss is $15.81 billion
On November 10 of the current year, Flores Mills sold carpet to a customer for $9,000 with credit terms 4/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date
Answers
Answer:
Dr cash $8,640
Dr sales discount $360
Cr accounts receivable $9,000
Explanation:
First and foremost , it is noteworthy that receiving payment on 17 November means that customer paid within the stipulated discount period of ten days, hence entitled to a 4% discount off the purchase price.
Cash received=$9,000*(1-4%)=$ 8,640.00
Discount allowed=$9,000-$ 8,640=$360
As a result of the above computations, the cash account would be debited with $8,640 while sales discount is debited with $360.
The accounts receivable is debited with the full purchase price of $9,000
Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separate Costs A 10,000 $25 $125,000 B 15,000 $30 $250,000 C 12,500 $24 $125,000 What is the constant gross margin percentage for Calamata
Answers
Answer:
20%
Explanation:
Gross profit is the net of sales and cost of sales. Gross Profit percentage is the ratio of gross profit to sales expressed as percentage.
Product Units Produced Final Sales Value per Unit Separate Costs
A 10,000 $25 $125,000
B 15,000 $30 $250,000
C 12,500 $24 $125,000
Total 37,500 $500,000
Sales Value
A (10,000 x $25) $250,000
B (15,000 x $30) $450,000
C (12,500 x $24) $300,000
Total Sales Value $1,000,000
Less
Joint Cost ($300,000)
Separable cost ($500,000)
Gross Profit $200,000
Gross Profit Percentage = ( $200,000 / $1,000,000 ) x 100 = 20%
How can you apply Total Quality Management, Six Sigma, Kaizen & Lean principles to improve the management of an academic institution
Answers
Answer:
TQM , Six sigma and Kaizen principles are essential for the development of a quality education system.
Explanation:
TQM is the management principle that focuses on maintaining a total quality system in involves the clarification of the mission, vision, and values of academic institutions, many use it to improve the effectiveness and quality of the programs. Self-evaluation and improvement of human relations. Helps to identify the barriers in academic institutions. In education six sigma improves the quality of the matter taught the audio and visual devices like the projector in te conferencing and paper presentation etc. Skill development and creation of a value-added standard and help in emotional development. The lean and kaizen have a streamlined process to improve efficiency in administering large scale programs helps to reduce cost, time and learning, applying analytical skills and developing competencies and improve workflow and opportunities.If company policy changes, should you explain those changes to employees and customers at about the same time? Or should one group before informed before the other group?
Answers
Answer:
Employees
Explanation:
The company should explain the changes to the employees first and then the constumers. This way the employees can answer questions regarding the changes better.
In what ways can succession planning be regarded as a type of contingency planning?
Answers
Answer & Explanation: A contigency plan refers to a plan to achieve an outcome other than in the usual plan. A succession planning involves identifying and developing new leaders who can easily replace exisiting leaders when the need arises.
Succession planning is a type of contingency plan as its goal is to accomodate the transfer of ownership/ managerial roles to a successor should the owner become disabled, dies or unable to operate business.
For example, a business owner may plan to transfer ownership of his business to his child but dies prematurely. Having already identified several successors, as a contingency plan one of them can run the business until the child mentioned in the will becomes of age and able to take over. This ensures the going concern of the business.
On January 1, Year 1, Hart Company issued bonds with a face value of $123,000, a stated rate of interest of 16 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 15 percent at the time the bonds were issued. The bonds sold for $127,123. Hart used the effective interest rate method to amortize the bond premium.
Prepare an amortization table.
Answers
Answer:
Find attached amortization table Hart Company bonds.
Explanation:
The amortization schedule starts with cash proceeds received from bondholders of $127,123,then adds interest expense to the cash proceeds using 15% effective interest rat i.e 15%*$127,123 and thereafter deducts interest payment which is 16% of face value i.e 16% *$123,000.
The premium amortization in each year is interest payment minus the interest expense.
During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 590 $20,709 Pavlov Co. 1,600 29,280 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $42 per share and the Pavlov Co. stock had a market value of $33 per share. Galileo Company had net income of $160,500 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments.
Answers
Answer: Please see below for answer
Explanation:
Security Shares Purchased Cost
Hawking Inc. 590 $20,709
Pavlov Co. 1,600 $ 29,280
total $49,989
In December 31st, the Hawking Inc. stock with market value of $42 per share and the Pavlov Co. stock had a market value of $33
Stock Number of shares market value per share value
Hawking Inc. $42 590 $24,780
Pavlov Co. $33 1600 $52,800
Total value $77,580
Unrealized gain/loss = $77,580- $49,989= $27,591
Galileo Company Balance sheet
Current assets
Available for sale investments at cost $49,989
Allowance available for sale investments $27,591
Available for sale at fair value $77,580
On December 31, 2016, Yong sells his 10% interest in Catawissa LLC to Mei for $17,500. Yong is a calendar year taxpayer. Catawissa owns no hot assets, and its tax year ends on September 30. On October 1, 2016, Yong’s basis in the LLC interest was $11,000. His share of current LLC income is $4,000 for the period in which he owned the LLC interest (October 1 to December 31).
Yong recognizes a $____________ capital gain on the sale.
Answers
Answer:
$6,500
Explanation:
Capit gain on sales = sales of interest by Yong -basis of Yong in the LLC interest
Sales of interest by Yong $17,500
Less Basis of Yong in the LLC interest $11,000
Gain $6,500
Therefore Yong will tend to recognize a gain of $6,500 because he makes a sale of $17,500 in which his basis in the LLC interest was $11,000 making him to have a capital gain of $6,500
How do Keynesians and classicals differ in their beliefs about how long it takes the economy to reach long-run equilibrium? What implications do these differences in beliefs have for Keynesian and classical views about the usefulness of antirecessionary policies? Classical economists think prices adjust _____ and that antirecessionary policies are _____, whereas Keynesian economists think the opposite.
Answers
Answer: Rapidly; Not Necessary
Explanation:
Keynesian Economists are of the believe that the Economy takes a fairly long time to reach a long run Equilibrium while Classical economists believe that it takes a shorter period of time. This has led to both classes of Economists having varying opinions when it comes to the need for Anti-recessionary Policies.
Anti-recessionary policies are implemented by the Government to try to get the economy back to the long run equilibrium as soon as possible and Keynesian Economists support this because the believe that if help is not given, the economy will take too long to adjust on its own. Classical Economists are against this and see no need for such policies because they maintain that the economy adjusts and reaches the Long run equilibrium rapidly meaning that such policies are not necessary and would just be a waste of resources as well as a way for the government to exert more influence on the economy which is another thing they are against as well.
Karen is a financial analyst. At work, she uses logic to reason and solve novel financial problems. This is an example of _____. She also has a vast amount of accumulated knowledge about the stock market, accounting software, and economic trends that she draws upon to help her succeed at her job. This is an example of _____.
Answers
Answer:
Fluid Intelligence, Crystallized Intelligence
Explanation:
Karen is a financial analyst. At work, she uses logic to reason and solve novel financial problems. This is an example of Fluid Intelligence. She also has a vast amount of accumulated knowledge about the stock market, accounting software, and economic trends that she draws upon to help her succeed at her job. This is an example of Crystallized Intelligence.
Fluid Intelligence is the ability of an individual to be able to reason and solve different problems in very unique and novel situations. On the other hand, Crystallized Intelligence is the ability of the individual to use the previously acquired knowledge from past experiences in order to solve a present problem. Which is what Karen is doing by using her stock market knowledge to solve problems in her job.
Dickerson Co. is evaluating a project requiring a capital expenditure of $810,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income Net Cash Flow 1 $75,000 $285,000 2 100,000 290,000 3 109,000 190,000 4 36,000 125,000 $320,000 $890,000 The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Required: Determine the average rate of return on investment, including the effect of depreciation on the investment. Round your answer to one decimal place. %
Answers
Answer:
The average rate of return on investment is 19.8%
Explanation:
According to the given data we have the following:
Initial Investment = $810,000
Salvage Value = $0
Henc, Average Investment = (Initial Investment + Salvage Value) / 2
Average Investment = ($810,000 + $0) / 2
Average Investment = $405,000
Average Net Income = ($75,000 + $100,000 + $109,000 + $36,000) / 4
Average Net Income = $320,000 / 4
Average Net Income = $80,000
Therefore, Average Rate of Return on Investment = Average Net Income / Average Investment
Average Rate of Return on Investment = $80,000 / $405,000
Average Rate of Return on Investment = 19.8%
The average rate of return on investment is 19.8%
Given the following information, calculate the total annual tax liability of the homeowner market value of property: $537,500; assessed value of property: 60% of the market value, exemptions: $2,500; school district millage rate: 29.25 mills; county and township millage rate: 5.75 mills. a.$7,437.50 b.$11,287.50 c. $11,200.00 d.$188,125.00
Answers
Answer:
The total annual tax liability of the homeowner market value of property is $11,200.00 . The right answer is c
Explanation:
According to the given data we have the following:
Market value of property= $5,37,500
Assessed value of property= 60% of the market value
Hence, Assessed value of property =$5,37,500*60% =$3,22,500
Exemption: $2500
Therefore,Assessed value =$3,22,500-$2,500 =$3,20,000
Schol district milleage rate= 29.25Mills
County and township milleage =5.75 Mills
Total rate of Mills =29.25+5.75=35 mills
Therefore, to calculate the total annual tax liability of the homeowner market value of property we would have to use the following formula:
Property tax amount= (Assessed value* Rate of mills/1,000,000)*1,000
Property tax amount= ($320,000*35/1,000,000)*1,000
Property tax amount= $11,200.00
The total annual tax liability of the homeowner market value of property is $11,200.00
Southwestern Wear Inc. has the following balance sheet:
Current assets $1,875,000
Accounts payable $375,000
Fixed assets 1,875,000
Notes payable 750,000
Subordinated debentures 750,000
Total debt $1,875,000
Common equity 1,875,000
Total assets $3,750,000
Total liabilities and equity $3,750,000
The trustee’s costs total $281,250, and the firm has no accrued taxes on wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $2.5 million is received from the sale of the assets?
Answers
Answer:
The investors will receive $343,750
Explanation:
In order to calculate the amount each class of investors receive we would have to calulate first the Balance available for Investors as follows:
Balance available for Investors=Total funds received -Trustee’s cost
Balance available for Investors=$2,500,000 -$281,250
Balance available for Investors =$2,218,750
Therefore, Balance available for stock holder=Balance available for Investors-Payment to Accounts payable-Notes Payable-Subordinated debentures
Balance available for stock holder=$2,218,750 - $375,000 -$750,000 - $750,000
Balance available for stock holder= $343,750
The investors will receive $343,750
Your coin collection contains 95 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2060, assuming they appreciate at an annual rate of 4.9 percent
Answers
Answer:
FV= $16,652.38
Explanation:
Giving the following information:
Your coin collection contains 95 1952 silver dollars.
Number of years= 2060 - 1952= 108
They appreciate at an annual rate of 4.9 percent.
To calculate the future value of the coins, we need to use the following formula:
FV= PV*(1+i)^n
FV= 95*(1.049^108)
FV= $16,652.38
A variety of different savings products are offered by financial institutions. Two of the most frequently sold savings investments are statement (or passbook) savings accounts and certificates of deposit (CDs). How do they differ? Read the following statements and classify each as to whether it applies to a statement savings account, a certificate of deposit, or both.
Certificate of Deposit Statement Savings Account
Statement
1. The interest rate can be either fixed or variable over the life of the account.
2. The account has no fixed maturity or end; if you maintain the minimum required balance in the account and the institution does not cease doing business, the account could earn interest over your entire lifetime.
3. The account often earns a higher interest rate than the rate earned on NOW and share draft accounts.
4. If you withdraw your funds prior to the account's specified maturity, it is possible to end up with less money than you originally deposited.
5. The account offers you greater flexibility with regard to the frequency and number of deposits and withdrawals.
Answers
Answer:
A statement savings account can be drawn upon any time the customer requires cash (on demand). The customer can also deposit cash into the account at any time. The interest rate payable on the deposits is not fixed but fluctuates. A statement savings account is opened for a life-time and there is no fixed time for the deposits to stay.
The duration for which the Certificates of Deposit will be saved is fixed. A customer is not freely allowed to withdraw and deposit into the account. The customer withdraws at maturity. The interest rate is fixed and cannot be altered.
1. Both
2. Statement Savings Account
3. Certificate of Deposit
4. Certificate of Deposit
5. Statement Savings Account
Explanation:
A statement (or passbook) savings account is an ordinary savings account opened in a bank for depositing and withdrawing money regularly as needed by the customer.
A Certificate of Deposit (CD) is a fixed-term duration savings account, which is opened in a bank to enable the customer deposit some fixed amount that will not be withdrawn regularly by the customer until the maturity date. CDs are called time deposits because of the fixed time the deposits must stay.
The following events pertain to Super Cleaning Company: 1. Acquired $15,600 cash from the issue of common stock. 2. Provided $13,600 of services on account. 3. Provided services for $4,600 cash. 4. Received $3,000 cash in advance for services to be performed in the future. 5. Collected $9,600 cash from the account receivable created in Event 2 6. Paid $5,600 for cash expenses. 7. Performed $1,500 of the services agreed to in Event 4 8. Incurred $2,100 of expenses on account. 9. Paid $1,400 cash in advance for one-year contract to rent office space. Paid $1,750 cash on the account payable created in Event 8. 11. Paid a $2,100 cash dividend to the stockholders. 2. Recognized rent expense for nine months' use of office space acquired in Event 9.
Answers
Answer:
Since there is not enough room here to elaborate a horizontal financial statement, I attached an excel spreadsheet. Each of the 12 events corresponds to the events detailed in the question.
Explanation:
1) Prepare an ending 2015 Income Statement and Balance Sheet from the following information: Sales $800,000; Cost of Goods Sold $300,000; Accounts Receivables $20,000; Bonds Outstanding $160,000; Accounts Payable $20,000; Advertising Expense $1,000; Administrative Expenses $35,000; Interest Expense $24,000; Depreciation Expense $40,000; Dividends Paid $137,000; Rent Expense $5,000; Accruals $20,000; Common Stock $100,000; Retained Earnings $245,000 (Beginning 0f 2015); Cash $20,000; Inventory $45,000; Net Fixed Assets $600,000 (Beginning of 2015). (Assume a 40% Tax Rate)
Answers
Answer:
Ending retained earning for 2015 = $345,000
Total Assets = $645,000
Shareholder's equity = $445,000
Total liabilities = $200,000
Explanation:
a. Income Statement for the year ended 2015
Details $
Sales 800,000
Cost of Goods Sold 300,000
Gross profit 500,000
Advertising Expense (1,000)
Administrative Expenses (35,000)
Depreciation Expense (40,000)
Rent Expense (5,000)
Operating income 419,000
Interest Expense (24,000)
Income before tax 395,000
Taxation (40% * $395,000) (158,000)
Net income 237,000
Dividend paid (137,000)
Retained earning for the year 100,000
Beginning retained earning 245,000
Ending retained earning 345,000
a. Balance sheet as at the year ended 2015
Details $ $
Assets:
Beginning Net Fixed Assets 600,000
Depreciation 40,000
Ending Net Fixed Assets 560,000
Current Assets:
Cash 20,000
Accounts Receivables 20,000
Inventory 45,000
Total Assets 645,000
Shareholder's Fund:
Common Stock 100,000
Ending retained earning 345,000
Shareholder's equity 445,000
Bonds Outstanding 160,000
Accounts Payable 20,000
Accruals 20,000
Total liabilities 200,000
Total equities and Liabilities 645,000
The GDP of a country hasnt improved in the past three years. The central bank decided to take a measure that will increase the amount of
money people spend on goods and services. Which step should the central bank take?
A increase interest rates
OB
reduce interest rates
oc
increase taxes
OD
increase the required reserve ratio
OE increase the price of goods and services
Answers
The correct answer is B. Reduce interest rates
Explanation:
The GDP or gross domestic product is measured based on the amount of money products and services produced by a country cost. This concept is related to the amount of money people in a country spend on goods and services. Additionally, one of the ways to increase the GDP by motivating people to spend more money is if interest rates are reduced because if the interest rate is low (money people need to pay for a loan) consumers are more likely to request loans and use the money of these on goods and services. This increases the amount of services and goods and therefore has a positive impact on the GDP.
The current sections of Pearl Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Pearl Corp.’s net income for 2022 was $279,400. Depreciation expense was $46,200.
2022 2021
Current assets
Cash $68,200 $97,900
Accounts receivable 93,500 75,900
Inventory 85,800 68,200
Prepaid expenses 18,700 20,900
Total current assets $266,200 $262,900
Current liabilities
Accrued expenses payable $6,600 $17,600
Accounts payable 96,800 79,200
Total current liabilities $103,400 $96,800
Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year ended December 31, 2022 using the indirect method.
Pearl Corp.
Partial Statement of Cash Flows
December 31, 2022
Cash Flows from Operating Activities
Net Income 168,300
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense 29,700
Decrease in Accounts Receivable
Decrease in Inventory
Increase in Prepaid Expenses:
Decrease in Accrued Expenses Payable
Decrease in Accounts Payable
Net Cash Provided by Operating Activities
Answers
Answer:
$299,200
Explanation:
Pearl Corp.’s Statement of cash flows
Cash Flows from operating activities:
Net Income 279,400
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation expense $46,200
Accounts Receivables Increase ($17,600)
(93,500 -75,900)
Inventories Increase ($17,600)
(85,800 -68,200)
Prepaid expenses decrease $2,200
(18,700- 20,900)
Accrued Expenses payable decrease($11,000)
($6,600- $17,600)
Accounts Payable increase $17,600
(96,800 - 79,200)
Net Cash provided by Operating Activities $299,200
Printers Company pays a $25,000 annual membership fee to a trade association for paper wholesalers. The trade association estimates that 60% of its dues are allocated to lobbying activities. If amount is zero, enter, "0". a. Printers Company's total deductible expense for tax purposes is $ . b. Assume the same facts as above except that the $25,000 was incurred for in-house lobbying expenses. Printers Company's total deductible expense for tax purposes is $ .
Answers
Answer: a. $10,000. b. $0
Explanation:
Lobbying expenses are the money that are used to influence a legislative body either at the federal, state or local level. I'm general, the lobbying expenses are not typically deductible. The amount that was paid to the trade association which was not part of the lobbying will be as deduction.
a. We are told that the trade association estimates that 60% of its dues are allocated to lobbying activities. This means that (100% - 60%) = 40% wasn't part of the lobbying expenses. We will now find 40% of $25,000. This will be:
= 40% of $25,000
= 40/100 × $25000
= 0.4 × $25000
= $10,000
Therefore, the total deductible expense for tax purposes is $10,000
b. We are told that the $25,000 was incurred for in-house lobbying expenses. Therefore Printers Company's total deductible expense for tax purposes will be $0.
The selected transactions below were completed by Cota Delivery Service during July: Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list:
Increase in an asset, decrease in another asset. Increase in an asset, increase in a liability. Increase in an asset, increase in stockholders' equity. Decrease in an asset, decrease in a liability. Decrease in an asset, decrease in stockholders' equity.
1. Received cash in exchange for common stock, $35,000.
2. Purchased supplies for cash, $1,100.
3. Paid rent for October, $4,500.
4. Paid advertising expense, $900.
5. Received cash for providing delivery services, $33,000.
6. Billed customers for delivery services on account, $58,000.
7. Paid creditors on account, $2,900.
8. Received cash from customers on account, $27,500.
9. Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month.
10. Paid cash dividends, $2,500.
Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in column, and inserting at the right of each number the appropriate letter form the following list:
a. Increase in the asset, decrease in another asset.
b. Increase in and asset, increase in a liability.
c. Increase in an asset, increase in stockholders' equity.
d. Decrease in an asset, decrease in a liability.
e. Decrease in an asset, decrease in stockholders' equity.
Answers
Answer:
1.c
2.a
3.e
4.e
5.c
6.c
7.d
8.a
9.e
10.e
Explanation:
First it is important to know and understand the definition of Asset, Liability and stockholders' equity. Then establish if these elements increase or decrease in a transaction.
Assets are economic resources controlled by a company as a result of past events from which economic benefits are expected to flow into the entity.
Liabilities are present obligation that arises as a result of past event settlement of which would result in outflow of economic benefits from the entity.
Stockholders equity is the residue in Assets after removing the liabilities.
