Identify each of the following accounts of Dispatch Services Co. as asset, liability, owner's equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: Item Type of Account Debit or Credit a. Accounts Payable Asset b. Accounts Receivable c. Ashley Griffin, Capital d. Ashley Griffin, Drawing e. Cash f. Fees Earned g. Office Equipment h. Rent Expense i. Supplies j. Wages Expense

Answers

Answer 1

Answer:

Explanation:

In this question, we apply the golden rule of accounting. There are three accounts which are dealing in it

Real account - It deals with the assets, liabilities, and equity side of the balance sheet

Nominal account - It deals with the expenses, losses and income and gains

Personal account - It deals with the person's needs like - for debtors, creditors, suppliers, etc

a. Account payable - liability - credit side.  

b. Account receivables - an asset - debit side

c. Ashley Griffin, capital - owner equity - credit side

d. Ashley Griffin, Drawing  - owner equity - debit side

e. Cash - an asset - debit side

f.  Fees Earned - revenue - credit side

g. Office Equipment - an asset - debit side

h. Rent Expense - expense - debit side  

i. Supplies - asset - debit side

j. Wages Expense - expense - debit side

Answer 2
Final answer:

Accounts of Dispatch Services range across different types including liabilities, assets, owner's equity, revenue, and expenses, each of them carrying a normal balance either as a debit or a credit.

Explanation:

The accounts of Dispatch Services Co can be classified as follows: a. Accounts Payable (Liability, Credit), b. Accounts Receivable (Asset, Debit), c. Ashley Griffin, Capital (Owner's Equity, Credit), d. Ashley Griffin, Drawing (Owner's Equity, Debit), e. Cash (Asset, Debit), f. Fees Earned (Revenue, Credit), g. Office Equipment (Asset, Debit), h. Rent Expense (Expense, Debit), i. Supplies (Asset, Debit), j. Wages Expense (Expense, Debit). These classifications help in understanding the entire financial health of the Ashley's Dispatch Services company.

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Related Questions

Nicola borrows 50000 dollars from a bank that charges interest at an annual rate of 8 percent, compounded monthly. Calculate the monthly payment that Nicola would have to make in order for the loan to be paid off after exactly 25 years. (Give your answer, in dollars, to the nearest cent. You should not include the dollar sign or any commas in your answer.)

Answers

Answer: $387.23

Explanation:

Given that,

Borrowed from bank, P = $50,000

Annual interest rate, r = 8% = 0.08

Monthly rate of interest = [tex]\frac{0.08}{12}[/tex]

                                       = 0.0067

Tenure(period), n = 25 years = 25 × 12

                                                = 300 months

[tex]Monthly\ Installments=\frac{P\times r\times (1+r)^{n}}{[(1+r)^{n}-1]}[/tex]

[tex]Monthly\ Installments=\frac{50,000\times 0.0067\times (1+0.0067)^{300}}{[(1+0.0067)^{300}-1]}[/tex]

[tex]=\frac{50,000\times0.0067\times7.413453}{7.413453-1}[/tex]

[tex]= \frac{2,483.50676}{6.413453}[/tex]

      = 387.23

Therefore, the required monthly payment is $387.23

Final answer:

Nicola needs to make a monthly payment of approximately $416.12 for 25 years to pay off a $50,000 loan with an 8% annual interest rate compounded monthly.

Explanation:

To calculate the monthly payment that Nicola would have to make to pay off the $50,000 loan after exactly 25 years at an annual interest rate of 8% compounded monthly, we will use the present value of an annuity formula. The monthly interest rate is 0.08 (annual rate) divided by 12 (months), which equals 0.00666667. The number of payments over 25 years is 25 years times 12 months, equalling 300 payments.

The formula for the present value of an annuity, which tells us the payment amount per time period, is:

PV = PMT ×

When rearranged to solve for PMT (the payment amount), it becomes:

PMT = PV ×

Substitute the values we have:

PMT = $50,000 ×

After performing the calculations, the monthly payment comes to approximately $416.12. Thus, Nicola would have to pay around $416.12 per month for 25 years to pay off the compounded interest loan.

Jeremy is an effective leader who is capable of helping his subordinates complete their tasks. However, he is considered intimidating by some of his team members and is often unable to boost the group's morale. Jeremy feels that since his strengths are task oriented, management should place him as the leader of team members who need task-related guidance. Jeremy is a strong believer of which leadership theory or approach?

Answers

Answer:

Transactional leadership style

Explanation:

Transactional leadership style is where the leader is focused on the overall goals of the company and getting things done instead of building a more long term social relationship. The leader is focused on a more professional relationship which benefits all the involved parties in such a way that is limited to the company only.

Dahlia Colby, CFO of Charming Florist Ltd., has created the firm’s pro forma balance sheet for the next fiscal year. Sales are projected to grow by 20 percent to $480 million. Current assets, fixed assets, and short-term debt are 20 percent, 70 percent, and 10 percent of sales, respectively. Charming Florist pays out 20 percent of its net income in dividends. The company currently has $125 million of long-term debt and $53 million in common stock par value. The profit margin is 15 percent.

a. Prepare the current balance sheet for the firm using the projected sales figure.

b. Based on Ms. Colby’s sales growth forecast, how much does Charming Florist need in external funds for the upcoming fiscal year?

c-1. Prepare the firm’s pro forma balance sheet for the next fiscal year.

c-2. Calculate the external funds needed.

Answers

A balance sheet is a fiscal report that gives a preview of an organization's monetary situation by summing up its resources, liabilities, and investors' value at a particular moment.

a. Current Asset report (Projected Deals: $480 million):

Current Resources:

Cash: $96 million (20% of $480 million)

Records of sales: $96 million (20% of $480 million)

Stock: $96 million (20% of $480 million)

All out Current Resources: $288 million

Fixed Resources: $336 million (70% of $480 million)

All out Resources: $624 million

Current Liabilities:

Momentary Obligation: $48 million (10% of $480 million)

Long haul Obligation: $125 million

Normal Stock: $53 million

All out Liabilities and Value: $624 million

b. External Funds Needed = (Projected Complete Resources - Current All out Liabilities and Value) - (Introductory All out Resources - Starting Absolute Liabilities and Value)

Outside Assets Required = ($624 million - $624 million) - ($480 million - ($125 million + $53 million))

Outside Assets Required = $0 - $302 million

= - $302 million (No outer assets required)

c-1. ro Forma Balance Sheet (Projected Deals: $480 million):

(Utilizing the determined qualities from section a.)

c-2. External Funds Needed:

As determined to some extent b, no outside reserves are required (- $302 million). The organization's projected development can be supported utilizing inward assets.

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Final answer:

The current balance sheet is prepared based on given ratios and Dahlia Colby's sales projection. In the next fiscal year, the firm's pro forma balance sheet is presented with additional retained earnings. Based on the difference between total assets and current liabilities, the external funds required for the Charming Florist can be determined.

Explanation:

a. To prepare the current balance sheet using the projected sales figures, we will perform the following calculations:  

Current assets: 0.20 × $480 million = $96 millionFixed assets: 0.70 × $480 million = $336 million Short-term debt: 0.10 × $480 million = $48 million

b. The net income of Charming Florist is determined by the profit margin which is 15% of the sales, making it $72 million (0.15 × $480 million). Dividends payout is 20% of the net income, therefore, $14.4 million (0.20 × $72 million) is paid out in dividends. This leaves $57.6 million (72 - 14.4) as an addition to retained earnings. To calculate the external funds needed, subtract this figure and the short-term debt from the total of current and fixed assets.

c-1. A pro forma balance sheet for the next fiscal year would look something like this:

     

c-2. Depending upon the exact current retained earnings, the required external financing can alter. But theoretically, if everything is the same, it can be calculated as Total Assets (i.e. Current and Fixed Assets) - (Short-term debts + Long-term debts + Common Stock + Retained Earnings).

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Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 125,000 Machine-hours required to support estimated production 62,500 Fixed manufacturing overhead cost $ 350,000 Variable manufacturing overhead cost per direct labor-hour $ 3.80 Variable manufacturing overhead cost per machine-hour $ 7.60 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 201 Direct labor cost $ 240 Direct labor-hours 15 Machine-hours 5 Required: 1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550? 2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach: a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 550. c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

Answers

Final answer:

The total manufacturing cost of Job 550 is the sum of direct materials cost, direct labor cost, and manufacturing overhead cost. The selling price for Job 550 is the total manufacturing cost multiplied by the markup percentage.

Explanation:

To compute the plantwide predetermined overhead rate, you need to divide the total estimated manufacturing overhead costs by the total estimated allocation base. In this case, the allocated base is the direct labor-hours. So, the plantwide predetermined overhead rate can be calculated as $350,000 / 125,000 = $2.80 per direct labor-hour.

To compute the total manufacturing cost of Job 550, you need to add together the direct materials cost, direct labor cost, and manufacturing overhead cost. In this case, the direct materials cost is $201, the direct labor cost is $240, and the manufacturing overhead cost (calculated using the plantwide predetermined overhead rate) is $2.80 x 15 hours = $42. The total manufacturing cost of Job 550 is $201 + $240 + $42 = $483.

If Landen uses a markup percentage of 200% of its total manufacturing cost, the selling price for Job 550 would be calculated as $483 x 200% = $966.

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Final answer:

The plantwide predetermined overhead rates are calculated using direct labor-hours or machine-hours; Job 550's total manufacturing cost and selling price are determined based on these rates. Different production methods are analyzed for cost-effectiveness by comparing the total costs, which include labor and machine costs.

Explanation:

To compute the plantwide predetermined overhead rate using direct labor-hours, we sum the fixed manufacturing overhead cost ($350,000) with the variable cost per direct labor-hour ($3.80) multiplied by the total estimated direct labor-hours (125,000). The total manufacturing cost of Job 550 includes the direct materials, direct labor cost, and the applied overhead. When using a markup of 200% on the total manufacturing cost, the selling price for Job 550 is calculated accordingly. On the other hand, if machine-hours are used as the base for the plantwide predetermined overhead rate, the calculation involves the fixed manufacturing overhead cost and the variable cost per machine-hour ($7.60) multiplied by the total estimated machine-hours (62,500).

When evaluating different methods of production, the total costs including the cost of labor and machine are considered to determine the most cost-effective method. In the numerical examples provided, adjustments in the cost of machines affect the overall costs systematically, allowing comparison and selection of the optimal production method based on cost efficiency.

A company has the following balances on December 31, 2018, after year-end adjustments: Accounts Receivable = $62,500; Allowance for Uncollectible Accounts = $6,200.

Calculate the net realizable value of accounts receivable

Answers

Answer: The net realizable value is the maximum value that can be achieved with the sale of the asset, discounting the costs associated with it.

The net realizable value (NRV) of accounts receivable would be:

NRV = Accounts Receivable - Allowance for Uncollectible Accounts

NRV = $ 62,500 - $ 6,200

NRV = $ 56,300

When thinking about a washing machine as a system, which of the following represents the inputs? Multiple Choice the dirty clothes, water, and detergent the clean clothes the wash and rinse cycle the light indicating that the washer is off balance and has stopped the buzzer indicating that the cycle is complete

Answers

Answer: The dirty clothes, water and detergent

Explanation: Inputs are the resources that are put into the system to attain a desired output, that may have a value to someone. The output is the final commodity that one get at the end of the system.

If we see washing machine as a system then the cleaned clothes are the output from that system. The resources that are used to get the clothes cleaned such as dirty clothes, water and detergent are the inputs.

Hence from the above we can conclude that the correct option is A.

Here is financial information for Marin Inc. December 31, 2017 December 31, 2016 Current assets $110,400 $ 94,600 Plant assets (net) 404,600 354,400 Current liabilities 103,600 69,400 Long-term liabilities 126,400 94,600 Common stock, $1 par 134,400 119,400 Retained earnings 150,600 165,600 Prepare a schedule showing a horizontal analysis for 2017, using 2016 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Answers

Answer:

                       2,016   2,017     2017 as 2016 base

Current Assets 94,600    110,400  increase 17%

Plant Assets       354,400  404,600 increase 14%

Total Assets       449,000    515,000        increase 15%

Current Laibilities 69,400   103,600 increase 49%

Long-Term Liab 94,600   126,400 increase 34%

Common Stock 119,400   134,400 increase  13%

Retained Earnings 165,600   150,600 decrease -9%

Total L+SE         449,000   515,000 increase 15%

Explanation:

We will compare new year with the previous year, as percent.

(2017-2016)/2016

This will gives the variance per year

A product may be made using machine I or machine II. The manufacturer estimates that the monthly fixed costs of using machine I are $18,000, whereas the monthly fixed costs of using machine II are $15,000. The variable costs of manufacturing 1 unit of the product using machine I and machine II are $10 and $20, respectively. The products sell for $50 each. What is the maximum profit if the projected sales are 650 units

Answers

Answer:

maximum profit is $8000 if sales from machine 1

Explanation:

given data

monthly fixed costs machine 1 = $18000

monthly fixed costs machine 2 = $15000

variable costs by machine 1 = $10

variable costs by machine 2 = $20

products sell = $50 each

to find out

What is the maximum profit if the projected sales are 650 units

solution

we consider here no of machine sold = x

and we know total Cost = Fixed Cost + Variable Cost

so for machine 1 cost = 18000 + 10x

for machine 2 cost = 15000 + 20x

here x we have given 650 machine sold so

for machine 1 cost = 18000 + 10(650) = $24500

for machine 2 cost = 15000 + 20(650) = $28000

we know products sell for $50 each

so earn for 650 = $32500

so profit from machine 1 = $32500 - $24500 = $8000

so profit from machine 2 = $32500 - $28000 = $4500

so maximum profit is $8000 if sales from machine 1

Final answer:

By calculating the profits using Machine I and Machine II, the maximum profit is achieved with Machine I, totaling $8,000.

Explanation:

To determine the maximum profit with projected sales of 650 units, we need to calculate the total cost and total revenue for producing 650 units with both Machine I and Machine II, then find the profit (Revenue - Cost) for each scenario to identify the higher profit.

Machine I

Fixed Costs: $18,000Variable Cost per unit: $10Total Variable Cost: $10 * 650 = $6,500Total Cost: Fixed Costs + Total Variable Cost = $18,000 + $6,500 = $24,500Total Revenue: $50 * 650 = $32,500Profit: Total Revenue - Total Cost = $32,500 - $24,500 = $8,000

Machine II

Fixed Costs: $15,000Variable Cost per unit: $20Total Variable Cost: $20 * 650 = $13,000Total Cost: Fixed Costs + Total Variable Cost = $15,000 + $13,000 = $28,000Total Revenue: $50 * 650 = $32,500Profit: Total Revenue - Total Cost = $32,500 - $28,000 = $4,500

The maximum profit of $8,000 is achieved with Machine I.

Assume the demand for watermelons is downward sloping. A decrease in price from $3 per pound to $2 per pound

(A) could have been caused by an increase in supply.
(B) will cause an increase in supply.
(C) will cause a smaller quantity of watermelons to be demanded.
(D) will cause demand to decrease.
(E) will cause demand to increase.

Answers

Answer:

(E) will cause demand to increase.

Explanation:

The demand has a downward sloping, so it decrease as more price.

Therefore if the price is lower, the demand will increase, not decrease.

More persons will demand watermelons as the price decrease. That's because at lower price more people can afford watermelons.

Horton Co. was organized on January 2, 2014, with 500,000 authorized shares of $10 par value common stock. During 2014, Horton had the following capital transactions:

January 5-issued 375,000 shares at $14 per share.
July 27-purchased 25,000 shares at $11 per share.
November 25-sold 18,000 shares of treasury stock at $13 per share.

Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2014?

Answers

Answer:

The balance in the Paid-in Capital from Treasury Stock account at December 31, 2014 is $36,000

Explanation:

The computation of the balance in the treasury stock account is shown below:

= Number of shares sold × (Selling price of share - purchase price of share)

= 18,000 shares × ($13 per share - $11 per share)

= 18,000 shares × $2 per share

= $36,000

The other items which are mentioned like issued shares, authorized shares are irrelevant because we have to compute for the treasury stock, not for the common stock. So, these parts would be ignored in the computation part.

Final answer:

The balance in the Paid-in Capital from Treasury Stock account at December 31, 2014 can be calculated by considering the capital transactions of Horton Co. during the year.

Explanation:

The balance in the Paid-in Capital from Treasury Stock account at December 31, 2014 can be calculated by considering the capital transactions of Horton Co. during the year.

On January 5, 375,000 shares were issued at $14 per share, resulting in an increase in Paid-in Capital. On July 27, 25,000 shares were purchased at $11 per share. Since the cost method was used, this transaction does not impact Paid-in Capital from Treasury Stock. On November 25, 18,000 shares of treasury stock were sold at $13 per share, resulting in a decrease in Paid-in Capital from Treasury Stock.

To calculate the balance, we need to subtract the decrease in Paid-in Capital from Treasury Stock from the increase in Paid-in Capital. Therefore, the balance would be the increase from the January 5 transaction, which is (375,000 shares x $14 per share) minus the decrease from the November 25 transaction, which is (18,000 shares x $13 per share).

On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2018, Jacob Inc. sold the truck for $30,000. What amount of gain or loss should Jacob Inc. record on December 31, 2018?
A.Loss, $3,000.
B.Loss, $18,000.
C.Gain, $22,000.
D.Gain, $5,000.

Answers

Answer:

D.Gain, $5,000.

Explanation:

Truck Value =  $48,000

Annual depreciation =   ( $48,000 -   $8,000) / 8 = $40,000 / 8= $5,000

First year (2013) = $40,000 - $5,000 =  $35,000

Second year (2014) = $35,000 - $5,000 =  $30,000

Third year (2015)= $30,000 - $5,000 =  $25,000

Gain  = Sale Value - Truck Value (actual) = $30,000 - $25,000 = $5,000

Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. At present, Iowa produces 20 million bushels of wheat and 120 million bushels of corn, while Nebraska produces 20 million bushels of corn and 120 million bushels of wheat.
...

Explain how, with trade, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn while Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat.

Answers

Explanation:

Iowa's opportunity cost of producing 1 bushel of wheat is

= 3 bushels of corn

Nebraska's opportunity cost of producing 1 bushel of wheat is

= [tex]\frac{1}{3}[/tex]

= 0.33 bushels of corn

Iowa's opportunity cost of producing 1 bushel of corn is

= [tex]\frac{1}{3}[/tex]

= 0.33 bushels of wheat

Nebraska the opportunity cost of producing 1 bushel of corn is

= 3 bushels of wheat

Nebraska has a comparative advantage in producing wheat and Iowa has a comparative advantage in producing corn.

If both countries start to produce the commodity they have a comparative advantage in producing, both will gain from trade.

Iowa can give up producing 20 million bushels of wheat and instead produce additional

= 20 × 3 = 60 million bushels of corn

Similarly, Nebraska can give up producing 20 million bushels of corn and instead produce additional

= 20 × 3 = 60 million bushels of wheat

So now Iowa can produce 180 million bushels of corn no wheat and Nebraska can produce 180 million bushels of wheat and no corn.

If they trade, Nebraska can trade 120 million bushels of wheat for 60 bushels of corn. With this trade, Nebraska will end up with 120 million bushels of corn and 60 million bushels of wheat and Iowa will end up with 60 million bushels of corn and 120 million bushels of wheat.

Final answer:

With trade, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn while Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat by specializing in the goods that have lower opportunity costs for each state and then trading with each other.

Explanation:

Opportunity cost is the value of the next best alternative that is forgone when making a decision. In the scenario given, Iowa and Nebraska have different opportunity costs for producing corn and wheat. The opportunity cost of producing 1 bushel of wheat for Iowa is 3 bushels of corn, while for Nebraska, the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat.

Given this information, with trade, both states can specialize in producing the good that has a lower opportunity cost for them and then trade with each other. Iowa should specialize in producing corn because its opportunity cost of corn is lower than that of Nebraska, and Nebraska should specialize in producing wheat because its opportunity cost of wheat is lower than that of Iowa.

Through trade, Iowa can swap some of its corn for Nebraska's wheat, and Nebraska can swap some of its wheat for Iowa's corn. This way, both states can end up with a larger quantity of the good they specialize in. So, Nebraska can end up with 40 million bushels of wheat and 120 million bushels of corn, and Iowa can end up with 40 million bushels of corn and 120 million bushels of wheat.

Exercise 3-14 Presented below is information related to Pronghorn Corporation for the month of January 2017. Cost of goods sold $192,390 Salaries and wages expense $65,800 Delivery expense 7,620 Sales discounts 8,440 Insurance expense 11,850 Sales returns and allowances 12,030 Rent expense 18,830 Sales revenue 319,900 Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answers

Answer:

Explanation:

The closing entry for the following accounts are shown below:

1. Sales Revenue A/c Dr $319,900

      To Income Summary $319,900

(Being revenue account closed)

2. Income summary A/c Dr $316,960

             To Cost of goods sold   $192,390

             To Delivery Expense $7,620

             To Salaries and Wages Expense $65,800

             To Insurance Expense $11,850

             To  Sales returns and allowances $12,030

             To Rent Expense $18,830

             To Sales discounts $8,440

(Being expenses accounts are closed)

3. Income summary A/c Dr $2,940 ($319,900 - $316,960)

        To Retained earning $2,940

(Being the difference is credited to retained earning)

is the sole proprietor of Prestigious Pups​, a business specializing in the sale of​ high-end pet gifts and accessories. Prestigious Pups​' sales totaled $ 986 comma 000 during the most recent year. During the​ year, the company spent $ 58 comma 500 on expenses relating to website​ maintenance, $ 30 comma 500 on​ marketing, and $ 29 comma 100 on​ wrapping, boxing, and shipping the goods to customers. Prestigious Pups also spent $ 643 comma 000 on inventory purchases and an additional $ 19 comma 700 on​ freight-in charges. The company started the year with $ 16 comma 250 of inventory on hand and ended the year with $ 16 comma 800 of inventory. Prepare Prestigious Pups​' income statement for the most recent year.

Answers

Answer:

Instructions are listed below

Explanation:

An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

It follows the general structures:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

Gains (+)

Losses (-)

Net income/loss

In this exercise:

sales totaled $ 986000

$58500 on expenses relating to website​ maintenance

$30500 on​ marketing

$29100 on​ wrapping, boxing, and shipping the goods to customers.

$643000 on inventory purchases

$19700 on​ freight-in charges.

started the year with $16250 inventory

ended the year with $ 16800 of inventory.

Revenues= 986000

Expenses (-)

Primary Activity Expenses:

Cost of goods sold= Initial inventory + purchase - ending inventory= $642450

wrapping, boxing, and shipping= $29100

Secondary Activity Expenses:

website​ maintenance=58500

marketing= $30500

freight-in charges= $19700

Total Expenses= $780250

Net income= $205750

Accounts Amounts Cash received from sale of products to customers $ 31,000 Cash received from the bank for long-term loan 36,000 Cash paid to purchase factory equipment (41,000 ) Cash paid to merchandise suppliers (10,200 ) Cash received from the sale of an unused warehouse 11,200 Cash paid to workers (22,200 ) Cash paid for advertisement (2,200 ) Cash received for sale of services to customers 21,000 Cash paid for dividends to stockholders (4,200 ) Assume the balance of cash at the beginning of the period is $3,200. Required: 1. Calculate the ending balance of cash.

Answers

Answer:

Ending cash  balance  :  22,600

Explanation:

operating activities:

collection from products    31,000

collection from services     21,000

merchandise suppliers     (10,200)

wages paid                       (22,200)

advertisement paid            (2,200)

generated from operating activities          17,400

financing activities:

loan from the bank 36,000

dividends paid         (4,200)

cash generated from financing activities 31,800

investing activities:

sale of warehouse           11,200

purchase of equipment (41,000)

cash used in investing activities              (29,800)

cash generated for the period                                        19,400

beginning cash balance                                                    3,200

Ending cash  balance                                                      22,600

In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.

Refer to the information provided above. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?
A. $60,000
B. $36,000
C. $50,000
D. $45,000

Answers

Answer:

The correct option is (D)

Explanation:

Given:

Allen's capital = $140,000

Daniel's capital = $40,000

Total capital before admitting David = $180,000

David's interest in partnership is 1/5 or 20%. So Allen and Daniel's capital will now be 80%.

Required capital after admitting David = [tex]\frac{180,000}{0.8}[/tex]

= $225,000

David's investment = 225,000 - 180,000

                                = $45,000

Therefore, David's investment in partnership is $45,000

You have been assigned to make a recommendation about whether to build a factory manufacturing facility in Arkansas or New Jersey. Average production is estimated at 60,000 units per year. Estimations for cost factors were observed by obtaining cost data over the past year. Fixed costs including the financing of building and equipment, property taxes and insurance as well as overhead staff. Variable costs include repair product development, direct labor, shipping in and out. Our analysis indicated the following costs: Arkansas New Jersey Fixed $3,753,000 $2,221,000 Variable $52.73 $74.99 The difference in cost for production between New Jersey and Arkansas when manufacturing 75000 units is

Answers

Answer:

The differential cost is  $4,369,250 in favor of New Jersey

Explanation:

Giving the following information:

Arkansas:

Fixed costs=$3,753,000

Variable costs= $52.73

New Jersey:

Fixed costs= $2,221,000

Variable costs= $14.99

If the production is 75000 units

Arkansas= 3753000+ 52.73*75000= $7707750

New Jersey= 2221000+14.9*75000= $3338500

The differential cost is  $4,369,250 in favor of New Jersey

Molteni Motors Inc. recently reported $3.25 million of net income. Its EBIT was $6.25 million, and its tax rate was 35%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3.25 million net income by 1 − T = 0.65 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.

Answers

Answer:

Interest= $1250000

Explanation:

We know that:

EBIT

interest (-)

=earnings before taxes

tax (-)

=Net profit

EBIT= 6250000

Interest= ?

t= 0,35

Net profit= 3250000

interest= [netprofit/(1-t)]- EBIT

interest= (3250000/0,65)-6250000

interest= 1250000

Tax=(EBIT-interest)*0,35= 1750000

Final answer:

To calculate the interest expense, we can use the formula: Interest Expense = EBIT - Taxable Income. Using the given values, the interest expense is $1.25 million.

Explanation:

To find the interest expense, we can use the formula:



Interest Expense = EBIT - Taxable Income



First, we need to calculate the taxable income by dividing the net income by (1 - tax rate):



Taxable Income = Net Income / (1 - Tax Rate)



Substituting the given values, we have:



Taxable Income = $3.25 million / (1 - 0.35) = $5 million



Next, we can calculate the interest expense by subtracting the taxable income from EBIT:



Interest Expense = EBIT - Taxable Income



Interest Expense = $6.25 million - $5 million = $1.25 million



Therefore, the interest expense is $1.25 million.

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Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expected to be $4,000.

Calculate depreciation expense using the straight-line method for 2018 and 2019, assuming a December 31 year-end. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)

Answers

Answer:

2018: 8 months

Depreciation= $916,67

2019: full year

Depreciation= $1375

Explanation:

Giving the following information:

Taco Hut purchased equipment on May 1, 2018.

Price:  $15,000.

Residual value: $4,000

Useful life: 8 year

We need to calculate the depreciation for 2018 and 2019 using straight-line method:

Depreciation= (purchase price- residual value)/useful life

Depreciation= (15000-4000)/8= $1375

2018: 8 months

Depreciation=(1375/12)*8= 916,67

2019: full year

Depreciation= $1375

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $375,000; Cash paid for rent, $47,000; Cash paid to employees for services rendered during the year, $127,000; Cash paid for utilities, $57,000. In addition, you determine that customers owed the company $67,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,700 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

Answers

Answer:

Net Income for the year            234.500

Explanation:

Income Cash collected 375.000  

Income Customer Owed 67.000  

   

Total Income                  442.000  

   

Expenses Employees 127.000  

                Utilities               57.000  

                Rent                          23.500 The effect on results of for 1 year was paid for 2 years in advance.  

   

Total Expenses          207.500  

   

Net Income                 234.500  

Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate​ this, suppose your goal is to save​ $1 million by the age of 6060. What amount of money will be saved by socking away ​$11 comma 79311,793 per year starting at age 2929 with aa 66​% annual interest rate. Will you achieve your goal using the​ long-term savings​ plan? What amount of money will be saved by socking away ​$27 comma 18627,186 per year starting at age 4040 at the same interest​ rate? Will you achieve your goal using the​ short-term savings​ plan?

Answers

Answer:

In both cases you will reach $1 million in savings

Explanation:

Giving the following information:

Suppose your goal is to save​ $1 million by the age of 60.

1) What amount of money will be saved by socking away ​$11,793 per year starting at age 29 with a 6​% annual interest rate?

We need to use the final value formula with an annual deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {11793*[(1.06^31)-1]}/0.06= $1,000,066.18

2)What amount of money will be saved by socking away ​$27,186 per year starting at age 40 at the same interest​ rate?

FV= {27186*[(1.06^20)-1]}/0.06

FV= $1,000,053.1

In both the cases, an individual would reach his target of reaching $1 million in savings.

What is savings?

Saving is that part of income which is not spent, or postponed consumption. Methods of saving include putting money aside in.

Example:

A deposit account, an investment fund, or as cash. Saving also regards cut back expenditures, such as recurring costs.

Computation of Savings:

(1). If starting at the age of 29 years, the total amount of saving would be:

Given that,

A= Annuity = $11,793,

n = time =  31 years,

r = Rate = 6%.

Now, we have to put here the formula of future value(FV):

[tex]\text{FV} =A \dfrac{(1+i)^n-1}{i}\\\\\\\text{FV} =\$11,793\times \dfrac{(1+6\%)^3^1-1}{6\%}\\\\\\\text{FV} = \$1,000,066.18[/tex]

(2). If starting at the age of 40 years, the total amount of saving would be:

Given that,

A= Annuity = $27,186,

n = time = 20 years,

r = Rate = 6%.

Here also, we have to put here the formula of future value(FV):

[tex]\text{FV} =A \dfrac{(1+i)^n-1}{i}\\\\\\\text{FV} =\$27,186\times \dfrac{(1+6\%)^2^0-1}{6\%}\\\\\\\text{FV} = \$1,000,053.1[/tex]

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Which of the following is true about the relationship between price and quantity supplied? There is always a direct relationship between price and quantity supplied. There is always an inverse relationship between price and quantity supplied. There is usually a direct relationship between price and quantity supplied. There is usually an inverse relationship between price and quantity supplied.

Answers

Answer:

There is always a direct relationship between price and quantity supplied.

Explanation:

If the product cost is given:

The higher the price, the higher the profit thus, more people willing to enter the business and more willingness to increase current production. Thus, there is an incentive to increase the quantity supplied. There is a direct relationship as both increases. There is no reason why this cannot be true under the circumstance proposed so, it always applpies

Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $954,210 Office expense 219,470 Miscellaneous expense 19,085 Wages expense 458,020 Prepare an income statement for the year ended May 31, 20Y6. Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6

Answers

Answer:

Instructions are listed below

Explanation:

An income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period. The income statement focuses on the four key items - revenue, expenses, gains, and losses. It does not cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

It follows the general structures:

Revenues (+)

Operating Revenue

Non-Operating Revenue

Total

Expenses (-)

Primary Activity Expenses

Secondary Activity Expenses

Total

Gains (+)

Losses (-)

Net income/loss

In this exercise:

Total revenues=$954210

Expenses:

Office expense 219470

Miscellaneous expense 19085

Wages expense 458020

Total Expenses=$696575

Net profit= $275635

Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $335,000; Cash paid for rent, $39,000; Cash paid to employees for services rendered during the year, $119,000; Cash paid for utilities, $49,000. In addition, you determine that customers owed the company $59,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,900 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

Answers

Answer:

The accrual net income for the year is $204,600

Explanation:

The computation of the accrual net income for the year is shown below:

Net income = Revenue - expenditure

where,

Revenue = Cash collected from customers + customers owed at the end of the year

And, the expenditure = Cash paid for rent + Cash paid to employees for services rendered during the year + Cash paid for utilities + gas and electric expenses

Now put these values to the above formula

So, the answer would be equal to

= Cash collected from customers + customers owed at the end of the year - Cash paid for rent - Cash paid to employees for services rendered during the year - Cash paid for utilities - gas and electric expenses

= $335,000 + $59,000 - $19,500 - $119,000 - $49,000 - $1,900

= $204,600

The rent payment is given for two years but we have to compute for the one year only

So, rent payment = $39,000 ÷ 2 = $19,500

Consider a market​ where: Consumer surplus is 250 Producer surplus is 125. If both consumer surplus and producer surplus are​ maximized, what is the amount of the deadweight​ loss? 0 0. ​(round your answer to the nearest​ penny) ​Next, suppose that consumer surplus falls to 180​, but producer surplus rises to 155. What is the change in​ welfare? -35225 negative 25 ​(round your answer to the nearest penny and add the minus sign if necessary​).

Answers

Answer:

A. Deadweight loss = 125 units.

B. Deadweight loss = 25 units.

Explanation:

In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.

The amount of welfare lost is measure by the difference between consumer and producer surplus.

In the first case:

|Consumer surplus - producer surplus| = 25 units

|250- 125| = 125 units

And in the second case:

|180- 155| = 25 units

Final answer:

When both consumer surplus and producer surplus are maximized, there is no deadweight loss. The change in welfare is calculated as the difference between the initial and the final total surplus.

Explanation:

When both consumer surplus and producer surplus are maximized, there is no deadweight loss. Deadweight loss occurs when the economy produces at an inefficient quantity and results in a reduction in total surplus. In the given scenario, since both consumer surplus and producer surplus are maximized, there is no deadweight loss, so the amount of deadweight loss is 0.

When consumer surplus falls to 180 and producer surplus rises to 155, we can calculate the change in welfare. The change in welfare is the difference between the initial total surplus and the final total surplus. Initial total surplus = Consumer surplus + Producer surplus = 250 + 125 = 375. Final total surplus = Consumer surplus + Producer surplus = 180 + 155 = 335. The change in welfare is the difference between the initial and final total surplus: 375 - 335 = 40.

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Layla works during her meeting to pull together the ideas of her committee members into a coherent whole. Layla is performing a ___________ role.a.Maintenanceb.Relationship-orientedc.Taskd.Social

Answers

Answer: C

Explanation:

Layla works during her meeting to pull together the ideas of her committee members into a coherent whole. Layla is performing a task . task, duty, job, chore, stint, assignment mean a piece of work to be done. task implies work imposed by a person in authority or an employer or by circumstance. charged with a variety of tasks duty implies an obligation to perform or responsibility for performance.

The correct answer is C. Task

Explanation:

In a group discussion, meeting or similar scenario, participants can have different roles. In the case of task roles, this refers to roles such as monitoring participation, gathering information or pulling ideas together to get to conclusions or find a solution, and even motivating participants. The activities belong to a task role because they help the group to achieve the main purpose or goal.

Layla is performing a task role because her action of pulling ideas together is a common task or activity in this role, also, this action helps the group to accomplish the goal considering without Layla doing this, the group would not get a complete and coherent idea of the ideas provided by all participants.

Short-term financing transactions commonly occur in the:

A. primary markets.

B. secondary markets.

C. capital markets.

D. money markets

Answers

Answer:

The correct option is (D)

Explanation:

Short-term debt instruments are traded in money market that have maturity ranging from one day to one year. Some examples of money market instruments are certificate of deposits and treasury bills that have low risk and low returns.

Primary markets are where securities are traded for the first time. Buying and selling or already traded stock is done in secondary market. Capital markets deal with long-term securities. So, these options are incorrect.

Short-term financing is carried out in in money markets.

Folsom Fashions sells a line of women's dresses. Folsom's performance report for November Year 1 follows.Actual : Dresses Sold: 5000, Sales 235,000, variable cost is 145,000 contribution margin is 90,000, fix cost is 84,000 and operating income is 6,000Budget: Dresses Sold: 6000, Sales 300,000, variable costs: 180000, contribution margin is 120,000, fixed costs is 80000, and operating income is 40,000The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.The variable cost flexible budget variance for November is:(A) $4,000 unfavorable.(B) $5,000 favorable.(C) $5,000 unfavorable.(D) $4,000 favorable.

Answers

Answer:

(B) $5,000 favorable.

Explanation:

Variable cost flexible budget variance:

budget for 6,000 units total variable cost: $180,000

We divide the total cost by the activity in that budget:

$180,000/ 6,000 = 30

Now we multiply by the actual volume:

5,000 x 30 = 150,000

Now we do flexible budget - actual cost = variance

150,000 - 145,000 = 5,000 favorable

It is favorable, as the cost where less than expected.

Each of the following statements describes how the political and legal environment encourages productivity EXCEPT: A. Well-defined property rights encourage production and saving.
B. Political stability promotes economic growth.
C. Price changes in markets provide suppliers incentives to supply goods to markets.
D. Pay rates determined by a governmental planning agency provide workers with the incentive to work hard.

Answers

Final answer:

The statement 'D. Pay rates determined by a governmental planning agency provide workers with the incentive to work hard' does not necessarily relate to how the political and legal environment enhances productivity, as it implies government control over pay rates, unlike the others which encourage productive activities.

Explanation:

Each statement here refers to how the political and legal environment can enhance productivity, with one exception: D. Pay rates determined by a governmental planning agency provide workers with the incentive to work hard. This is the exception because it implies government control over pay rates, which may not necessarily promote productivity. In contrast, factors like well-defined property rights, political stability, and price changes in markets typically encourage productivity by establishing a conducive environment for economic activities. For instance, well-defined property rights give individuals the confidence to invest in their property, knowing it is safe from arbitrary seizure. Political stability gives businesses a stable environment to operate, whilst varying prices respond to supply and demand, thereby encouraging suppliers.

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Final answer:

The exception to how a political and legal environment fosters productivity is when pay rates are determined by a governmental planning agency.This pivotal role doesn’t always offer the necessary incentives to drive the employees working in an economy to increase productivity.

Explanation:

The statement that does not describe how the political and legal environment encourages productivity is (D) Pay rates determined by a governmental planning agency provide workers with the incentive to work hard. This is because centrally planned economies, where pay rates are set by a governmental planning agency, often provide less incentive for workers to increase productivity. Workers know they will receive the same pay regardless of how much effort they put into their work, potentially discouraging them from working hard. While the government can provide motivation for work through other means, the statement as is does not encourage an increase in productivity, unlike A, B, and C which all promote economic efficiency and growth.

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Which one of the following best describes the term "efficient market"?A) The commissions on large transactions are smaller than the commissions on small transactions.B) New information is quickly reflected in security prices.C) Little time and effort are spent on marketing securities to the public.D) The cost of receiving, processing, executing, and reporting securities orders is small.

Answers

Answer: Option B

Explanation: In simple words, the market in which the price of the securities reflect all the information that is relevant to the the investor is called an efficient market. No investor can beat such markets as no security is undervalued or overvalued.

This accuracy in pricing could only be maintained when all the participants are fully aware of new information which is possible only if the information is quickly spread in the market.

Hence the correct option is B.

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