Business
A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $21,000. The instrument will be used for 6 years and be worth $1,000 at that time. The annual cost of use and maintenance will be $11,500. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $30,000, with use and maintenance costs of only $7,000 and salvage value after 6 years of $4,500. The marginal tax rate is 25%, and MARR is an after-tax 12%. Required:Determine which alternative is less costly, based upon comparison of after-tax annual worth
Winston Co. Had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 286,000 $ 520,000 $ 806,000 Variable Costs 189,800 218,400 408,200 Contribution Margin $ 96,200 $ 301,600 $ 397,800 Fixed costs 50,000 108,000 158,000 Operating Income $ 46,200 $ 193,600 $ 239,800 Selling Price per unit $ 110. 00 $ 50. 00 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 360,000 $ 540,000 $ 900,000 Variable Costs 195,000 216,000 411,000 Contribution Margin $ 165,000 $ 324,000 $ 489,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 115,000 $ 216,000 $ 331,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The firm's total sales quantity variance for the period is:
The following transactions occurred during december 31, 2021, for the microchip company. a. on october 1, 2021, microchip lent $90,000 to another company. a note was signed with principal and 8% interest to be paid on september 30, 2022. b. on november 1, 2021, the company paid its landlord $6,000 representing rent for the months of november through january. prepaid rent was debited. c. on august 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of microchips factory. the $12,000 represents one years rent and the entire amount was credited to deferred rent revenue. d. depreciation on office equipment is $4,500 for the year. e. vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. the company records vacation pay as salaries expense. f. microchip began the year with $2,000 in its asset account, supplies. during the year, $6,500 in supplies were purchased and debited to supplies. at year-end, supplies costing $3,250 remain on hand. required: 1. if microchips accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only those entries that would be reversed. 2. prepare the appropriate reversing entries at the beginning of 2022.
Unstable export markets, worsening terms of trade, and limited access to the markets in advanced countries are just a few of the problems that have plagued developing nations in africa, asia, latin america, and the middle east. for example, developing countries have worsening terms of trade because of _________________--. developing nations have formed international commodity agreements (icas) between leading producing and consuming nations of commodities. to promote stability in commodity markets, icas have relied on production and export controls, buffer stocks, and multilateral contracts. for example, setting a minimum price for importers may help to ____________.
Inferring Purchases Using Cost of Goods Sold and Inventory Balances Geiger Corporation, a retail company, reported inventories of $1,320,000 in 2019 and $1,460,000 in 2020. The 2020 income statement reported cost of goods sold of $6,980,000. A. Compute the amount of inventory purchased during 2020. $Answer 7,120,000 b. Prepare journal entries to record (1) purchases, and (2) cost of goods sold. General Journal Description Debit Credit (1) Answer Accounts receivable Answer 0 Answer 0 Answer Inventory Answer 0 Answer 0 (2) Answer Cost of goods sold Answer 0 Answer 0 Answer Sales revenue Answer 0 Answer 0 c. Post the journal entries in part b to their respective T-accounts (including ending balance for inventory). Cash Answer 0 Answer 0 Cost of Goods Sold Answer 0 Answer 0 Inventory Bal. 1,320,000 Answer 0 Answer 0 Bal. Answer 0 Answer 0 d. Record each of the transactions in part b in the financial statement effects template to show the effect of these entries on the balance sheet and income statement. Remember to use negative signs with answers when appropriate
At the beginning of the summer, Humphrey Nelson was looking for a way to earn money to pay for his college tuition in the fall. He decided to start a lawn service business in his neighborhood. To get the business started, Humphrey used $6,000 from his savings account to open a checking account for his new business, Elegant Lawn Care. He purchased two used power mowers and various lawn care tools for $2,000, and paid $3,600 for a second-hand truck to transport the mowers. Several of his neighbors hired him to cut their grass on a weekly basis. He sent these customers monthly bills. By the end of the summer, they had paid him $4,800 in cash and owed him another $2,400. Humphrey also cut grass on an as-needed basis for other neighbors, who paid him $4,000. During the summer, Humphrey spent $800 for gasoline for the truck and mowers. He paid $4,000 to a friend who helped him on several occasions. An advertisement in the local paper cost $800. Now, at the end of the summer, Humphrey is concerned because he has only $3,600 left in his checking account. He says, "I worked hard all summer and have only $3,600 to show for it. It would have been better to leave the money in the bank. " Required: Prepare an income statement, a statement of owners equity (for the three month period ended August 31, 20X1), and a balance sheet (dated August 31, 20X1) for Elegant Lawn Care
mkbic systems is evaluating four projects a, b, c, and d that have risks associated with the producing benefits. based on the data given in the table below, which project is the best alternative? project a project b project c project d euaw prob. euaw prob. euaw prob. euaw prob. $2,500 0.3 $3,000 0.1 -$5,000 0.25 $4,000 0.35 $1,800 0.45 -$2,500 0.3 $6,750 0.45 $2,500 0.4 $3,200 0.25 $4,000 0.6 $2,000 0.3 -$1,500 0.25 group of answer choices project d project a project c project b not saved questions haven't answered yetquestion 1 time running: attempt due: apr 6 at 11:59pm
