On August 1, Ling-Harvey Corporation (a U.S.-based importer) placed an order to purchase merchandise from a foreign supplier at a price of 400,000 ringgits. Ling-Harvey will receive and make payment for the merchandise in three months on October 31. On August 1, Ling-Harvey entered into a forward contract to purchase 400,000 ringgits in three months at a forward rate of $0.60. It properly designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Relevant exchange rates for the ringgit are as follows: Date Spot Rate Forward Rate (to October 31) August 1 $ 0.60 $ 0.60 September 30 0.63 0.66 October 31 0.68 N/A Ling-Harvey's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Ling-Harvey must close its books and prepare its third-quarter financial statements on September 30. Prepare journal entries for the forward contract and firm commitment through October 31. Assuming the inventory is sold in the fourth quarter, what is the impact on net income over the two accounting periods

Answer:

The computations are shown below:

Explanation:

Return On Assets = Net income ÷ Average Total Assets × 100

where,

Average of Assets =  (Beginning Total Assets + Ending Total Assets) ÷ 2

= ($75,183 + $116,371) ÷ 2

= $191,554 ÷ 2

= $95,777

So, the return on investment is  

=$25,922 ÷ $95,777 × 100

= 27.06%

Profit Margin = Net income ÷ Sales × 100

= $25,922 ÷ $108,249 × 100

= 23.95%

Assets Turnover = Sales ÷ Average of  Total Assets

= $108,249 ÷$95,777

= 1.13

To calculate Sub Station's financial ratios, we found its return on assets to be 27.07%, profit margin to be 23.94%, and asset turnover ratio to be 1.13.

Here’s a step-by-step explanation:

1. Return on Assets (ROA)

Return on Assets measures how efficiently a company uses its assets to generate profit.

ROA = (Net Income / Average Total Assets) x 100

Average Total Assets = (Total assets, beginning + Total assets, ending) / 2

For Sub Station:

Average Total Assets = ($75,183 + $116,371) / 2 = $95,777

ROA = ($25,922 / $95,777) x 100 = 27.07%

2. Profit Margin

The Profit Margin indicates the percentage of revenue that has turned into profit.

Profit Margin = (Net Income / Net Sales) x 100

For Sub Station:

Profit Margin = ($25,922 / $108,249) x 100 = 23.94%

3. Asset Turnover Ratio

The Asset Turnover Ratio measures the efficiency of a company's use of its assets to generate sales.

Asset Turnover Ratio = Net Sales / Average Total Assets

For Sub Station:

Asset Turnover Ratio = $108,249 / $95,777 = 1.13

Nonprofit organizations are businesses that aim to provide charitable, religious, or educational purposes rather than making a profit. They may provide public services such as healthcare, education, or social support. These organizations are considered public corporations because they serve the public good and rely on funding or donations to fulfill their mission.

A nonprofit organization is a business entity that has a primary mission of providing charitable, religious, or educational purposes, rather than making a profit.

Some examples of nonprofit corporations in your area might include a nonprofit health organization, a private hospital, or a governmental agency like Health and Social Services.

A nonprofit health organization, for example, provides public health services such as medical research, health education, or access to affordable healthcare for disadvantaged populations.

These organizations are considered public rather than private corporations because their main goal is to serve the public good rather than generating profit for shareholders or owners. They may receive government funding, rely on donations, or operate using volunteer labor to fulfill their mission.

Answer:

7,657 bonds

Explanation:

In order to determine the minimum number of bonds first we have to find out the present value of the bond which is to be shown in the attached spreadsheet.

Data provided in the question

Future value or Face value = $1,000

PMT = $1,000 × 9% ÷ 2 = $45

Rate of interest = 10% ÷ 2 = 5%

NPER = 20 years × 2 = 40 years

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value of the bond is $914.20

Now the raise amount is $7 million

So, the number of minimum number of bonds is

= $7,000,000 ÷ $914.20

= 7,657 bonds

Answer:

252

Explanation:

In this question we use the PMT and the NPER formula which is to be shown in the attachment below:

Given that,  

Present value = $200,000

Future value or Face value = $0

RATE = 6% ÷ 12 = 0.5%

NPER = 30 years × 12 months = 360 months  

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after solving this, the pmt is $1,199.10

Now NPER is

Given that,  

Present value = $200,000

Future value or Face value = $100,000

RATE = 6% ÷ 12 = 0.5%

PMT = $1,199.10

The formula is shown below:  

= NPER(RATE;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the pmt is 251.82

To prepare the statement of cash flows using the indirect method, start with the net income and then adjust it for non-cash expenses and changes in operating assets and liabilities. Santana Rey's equity contribution and dividends were also taken into account to determine the overall increase in cash.

To prepare a statement of cash flows for Business Solutions using the indirect method, we begin with the net income and adjust it for non-cash charges (depreciation) and changes in operating assets and liabilities. Here is the breakdown:

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Final answer:

At December 31, 2017, Blue Landscaping's Land Account is $154,080, the Building Account is $39,360, and the Interest Expense is $5,030. By December 31, 2018, the Land Account remains at $154,080, the Building Account increases to $699,360, and the Interest Expense for the year is $60,360.

Explanation:

To compute the balance in each account for Blue Landscaping at December 31, 2017, and December 31, 2018, the costs incurred and payments made towards the construction must be taken into account, as well as the interest expense incurred from the loan.

December 31, 2017 Balances

December 31, 2018 Balances

Answer:

(A) Record the Total Costs of the plant assets.

Transaction           General Journal           Debit        Credit      

1                                    Land                  477000                          

                              Dismantling cost           40700      

                                   Leveling cost           60165      

                              Construction cost           1535600      

                             Lighting & Paving Area   96932      

                                    Cash                                         2210397

Note:        

1. According to IAS 16 Cost of asset consists of expense which has endurs future economic benefit.  

2. Cost of Asset includes construction cost ,development cost , Dismantling cost and lighting & paving area etc.

Final answer:

To record Cala Manufacturing's expenditure on the new plant, the accounting journal entry would debit Land for $577,865, Buildings for $1,535,600, and Furniture and Fixtures for $96,932. Credit would be made to Cash for the total sum of $2,210,397.

Explanation:

To record the costs incurred by Cala Manufacturing for its new plant construction and related expenses, a single journal entry would be made in their accounting system. This includes the purchase of land, site preparation costs, construction costs of the new building, and costs for lighting and paving a parking area.

The journal entry would follow this format:

Answer:

Opportunity costs are defined as the additional costs or benefits lost from choosing one activity or investment over another alternative. It is a relative concept because you cannot be 100% sure that the other investments or activities would have yielded a specific gain.

For example, when you calculate the economic cost of starting your own business, you consider your current salary as an opportunity cost. But what happens if you get fired (or the company closes), your opportunity cost would have been $0? Or how can you exactly measure your future salaries? Maybe in a couple of years you get promoted to manager, or maybe not?

The same applies to economies, since the opportunity cost of producing certain tradable goods is not always fixed, it might decrease or increase due to productivity or efficiency changes. But in order to calculate or determine we must include the most probable option.

In microeconomics, a strictly convex production possibilities frontier function must include a combination of both goods. In strict convexity, the second derivative f''(x) ˃ 0, so the PFF curve cannot be straight, it must have a slope.

When we calculate the opportunity costs of PPF, we usually try to determine which product has the lowest opportunity cost, but that is not an interior solution because both goods are not being produced (the curve is not strictly convex). On a strictly convex curve, as you approach the extremes the opportunity cost of producing one good is high, but on the center the opportunity cost is much lower.

Answer:

$404,000

Explanation:

Overheads includes all indirect cost incurred to product the units to be sold. Indirect costs are those costs which are not directly traceable / attributable to the product. These cost are variable and fixed.

Time for each unit = 30 minutes = 0.5 hours

Budgeted production in November = Closing Inventory + Sales in November - Opening Inventory.

Budgeted production in November = (180,000 x 10% ) + 135,000 - 14,000 = 139,000

Budgeted production overhead Included all the variable and fixed overheads incurred to produce the budgeted production.

Variable overhead = 139,000 x 5 X 0.5 = $347,500

Total budgeted Overhead = $347,500 + $56,500 = $404,000

Answer:

The correct answer is C

Explanation:

Economies is the study of how the society uses the resources which are limited and it deals with the consumption, production as well as distribution of the goods and services.

And under the economics the cost of something like or product is defined as what the person give up in order to get something.

For example, a person wants to purchase to product, he needs to give up the money against it in order to have the product or item with him.

Answer and explanation:

Attached is a comprehensive solution

in a well formatted excel table

Question: The question is not complete. Find below the complete quesion and the answer.

Cawley Company makes three models of tasers. Information on the three products is given below.

                                       Tingler  Shocker  Stunner  

Sales                  $300,000 $500,000 $200,000  

Variable expenses  150,000  200,000  145,000  

Contribution margin 150,000  300,000  55,000  

Fixed expenses  120,000  230,000  95,000  

Net income          $ 30,000 $70,000  $(40,000)  

Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $30,000 (Tingler), $80,000 (Shocker), and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out.  James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company.

1. Compute current net income for Crawley company

2. Compute net income after dropping the stunner line model

Answer:

1. Current net income = $60,000

2. net income  = $40,000

Explanation:

See the attached file for the calculation

Answer:

$476190.47

Explanation:

Given,

Annual Saving = $50,000.

Growth = -2.5%

Interest rate = 8%

Present value of savings = Annual Saving / (Interest rate- Growth)

= $50,000 / (0.08-(-0.025)

= $50,000 / (0.08+0.025)

= $50,000 / 0.105

= $476190.47.

Therefore, the present vaue of the savings is $14,285.71.

Answer:

Kindly refer to the attached document for answers 1 to 3

4. If $33 was written off additionally

Then transfer to receivables in the year would have declined to $1,317 from $1,350 and the receivables balance would then be $16,167 from $16,200

Net income will not be affected by the $33 additional write off

To address the student's question, the T-account for 2014 was prepared, the equation was used to prove the changes in the Allowance for Doubtful Accounts, summary journal entries for 2015 were recorded, and the missing write-offs for 2016 were calculated. It was also determined that an additional write-off of $33 would decrease Net Receivables but not affect Net Income.

Understanding Allowance for Doubtful Accounts

To prepare a T-account for the Allowance for Doubtful Accounts using the 2014 amounts, you would note the beginning balance as a credit (since it is a contra asset account), add the increases for the year as credits, and the decreases as debits. By the end of 2014, the transactions will reflect a credit balance of $8,300.

T-account for 2014:

Beginning balance (Credit): $12,800

Bad Debt Expense (Credit increase): $1,050

Write-offs (Debit decrease): $5,550

Ending balance (Credit): $8,300

To write the T-account in equation format:

Beginning balance + Increases (Bad Debt Expense) - Decreases (Write-offs) = Ending balance

$12,800 + $1,050 - $5,550 = $8,300

Summary Journal Entries for 2015:

(a) Bad Debt Expense
Debit: Bad Debt Expense $4,750 (Expense increases)
Credit: Allowance for Doubtful Accounts $4,750 (Contra asset increases)

(b) Write-Offs
Debit: Allowance for Doubtful Accounts $3,750 (Contra asset decreases)
Credit: Accounts Receivable $3,750 (Asset decreases)

Missing Information for 2016:

To find the missing write-offs for 2016, we can use the equation format:

$9,300 (Beginning balance) + $4,150 (Bad Debt Expense) - Write-offs = $1,350 (Ending balance)

Write-offs = $9,300 + $4,150 - $1,350 = $12,100

Effect of Additional Write-Offs:

If Travel Today had written off an additional $33 in Accounts Receivable during 2016, the Net Receivables would decrease by $33, and there would be no effect on Net Income, as write-offs affect only the balance sheet accounts and have no impact on the income statement once the allowance for doubtful accounts has been adjusted for the Bad Debt Expense.

Answer:

A) Net income = $61,600

B)

I. Dollars in Minus Dollars Out = $94,000

II. Adjusted Accounting profit = $77,000

III. After tax Operating Cash flow = $78,600

Explanation:

a) Below is the income statement for the bicycle repair shop

Revenue:

Revenues = $188,000

Total Revenue = $188,000

Expenses:

Variable costs = $57,000

Rent (of shop) = $37,000

Total Expenses = $94,000

Gains:

Gain = $0

Losses:

Depreciation (of repair tools) = $17,000

Income Before Tax = $77,000

Income Tax (at 20%) = $15,400

Net Income = $61,600

b) We calculate Operating Cash Flow using 3 methods:

I. Dollars in Minus Dollars Out = Revenue - Expenses = $(188,000 - 94,000)

Dollars in Minus Dollars Out = $94,000

II. Adjusted accounting profits =  Total monetary revenue - Total costs

Total costs = Total Expenses + Depreciation = $(94,000 + 17,000)

Total costs = $111,000

Accounting profit = $(188,000 - 111,000)

Accounting profit = $77,000

III. Add back depreciation tax shield = Net Income + Depreciation

Add back depreciation tax shield = $(61,600 + 17,000)

Add back depreciation tax shield = $78,600

Final answer:

An income statement for the bicycle repair shop shows a net income of $61,600 after accounting for variable costs, rental costs, depreciation, and taxes. Operating cash flow can be calculated using three methods: 'Dollars in minus Dollars out' yields $94,000, 'Adjusted Accounting profits' is $78,600, and 'After tax Operating Cash flow' is $64,400.

Explanation:

To create an income statement for the bicycle repair shop, we'll begin by subtracting the variable costs, rental costs, and depreciation from the revenues to determine the pretax profit. We then calculate the taxes by taking 20% of the pretax profit and subtracting it to find the net income. Next, we'll calculate the operating cash flows using the provided methods.

Income Statement

Operating Cash Flow Calculations

The specific calculations for the operating cash flow are as follows:

Answer:

Total Budgeted unit sales$5,700

Total budgeted unit price $50

Budgeted total sales $285,000

Explanation:

Sales budget for the months of January, February, and March.

Budgeted unit sales × Budgeted unit price =Budgeted total sales

January $1,000 ×50=$50,000

February $3,000×50=$150,000

March $1,700×50=$85,000

Total Budgeted unit sales=$1,000+$3,000+$1,700=$5,700

Total Budgeted unit price $50

Budgeted total sales=$50,000+$150,000+$85,000

=$285,000

Answer:

d. $44,700

Explanation:

The preparation of the Cash Flows from Operating Activities - Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $40,000

Add : Depreciation expense $8,000

Less: Decrease in accounts payable -$1,800

Add: Decrease in merchandise inventory $2,500

Less:  Increase in accounts receivable -$4,000

Net cash flows from operating activities    $44,700

The long term liabilities and the common stock is not relevant. Hence, ignored it

Final answer:

The net cash flows from operating activities using the indirect method would be $44,700 after adding back non-cash depreciation expense, subtracting the increase in accounts receivable, adding the decrease in merchandise inventory, and subtracting the decrease in accounts payable to the net income.

Explanation:

To calculate the net cash flows from operating activities using the indirect method, we start with the net income and make adjustments for non-cash expenses and changes in working capital. We add back depreciation since it's a non-cash expense and adjust for the changes in working capital accounts (accounts receivable, inventory, accounts payable).

The calculation is as follows:

Net Income: $40,000

Add: Depreciation Expense: $8,000

Decrease in Accounts Receivable: Subtract the increase: $(4,000)

Decrease in Merchandise Inventory: Add the decrease: $2,500

Decrease in Accounts Payable: Subtract the decrease: $(1,800)

Now, we sum these amounts:

$40,000 (Net Income)

+$8,000 (Depreciation Expense)

-$4,000 (Increase in Accounts Receivable)

+$2,500 (Decrease in Merchandise Inventory)

-$1,800 (Decrease in Accounts Payable)

Total adjustments = $8,000 - $4,000 + $2,500 - $1,800 = $4,700

Net cash provided by operating activities = $40,000 + $4,700 = $44,700

Therefore, the correct answer is (d) $44,700.

Answer:

The study of how human beings COORDINATE their WANTS and DESIRES, given the decision making mechanisms, social customs, and political realities of the society

Answer:

X demand would rise by 8% ; Y demand would fall by 4%

Explanation:

Price Elasticity of Demand is the responsiveness in demand quantity, due to change in good's price

P.Ed = % change in demand / % change in own price

Cross Price Elasticity is the responsiveness in a good's demand quantity, due to change in other good's price

C.Ed = % change in demand (Y) / % change in other good's price (X)

Given {Good X Elasticities} : P.Ed =  (-) 4 ; C.Ed = 2

Price of X decrease = 2%

P.Ed = 4  = % change in demand / 2

% change in demand of X = 2 x 4 = 8%

P.Ed absolute value ignoring negative has been taken due to law of demand price - demand inverse relationship already depicting it. So, 2% fall in price of X increases it's quantity demanded by 8%

C.Ed = 2 =  % change in Y demand  / 2

% change in Y demand = 2 x 2 = 4%

Cross Price Elasticity of demand is positive in case of substitute goods. These goods can be interchange-ably used to satisfy a particular want. Substitutes price & demand are directly related;- as price fall of a good makes it relatively cheap, increases its demand, decreases other good's demand. So, 2% decrease in good X price decreases good Y demand by 4%

Answer: 1. Jacques picks Right

2. Jacques picks Right and Kyoko picks Right.

Explanation:

Hello.

I wasn't quite clear on your question so I added an attachment with the full question.

1. The only dominant strategy in this game is for ____Jacques____ to choose ___Right____.

The Dominant strategy for a player is that strategy that will result in the highest payoff independent of the actions of the other player.

If Jacques plays Right, they will have more or equal payouts but never less than Left regardless of what Kyoko does. Therefore choosing Right is Jacques's Dominant strategy.

2. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses___Right_______and Kyoko chooses ____Right_____.

Jacques will go with their dominant strategy of picking Right. This will make Kyoto pick the alternative of Right that results in the higher payoff. They make a payoff of 8 if they pick Right as well so that is what they will do.

If you need any clarification do comment. Cheers.

Answer:

Payback is 6.5 years

simple rate of return is 6.50%

Explanation:

The payback period for the investment is the number of years it would take the initial capital outlay of $537,600 to recoup itself,which is given by the formula below:

payback period=initial investment/annual incremental savings

initial investment is $537,600

annual incremental savings is $82,708

payback period=$537,600/$82,708= 6.5 years

Simple rate of return =annual savings-depreciation/initial investment

depreciation=($537,600-$107,520)/9=$47,786.67  

simple rate of return=($82,708-$47,786.67)/$537,600=6.50%

Answer:

Explanation:

Check the attached file for well formatted answer

Amount of the lease receivable = $211,999

Journal entries for Blossom for 2020 are as follows :-

Date Account Titles and Explanation Debit Credit

1/1/20 Lease receivable A/c Dr. $211,999  

Cost of goods sold A/c Dr. $146,000  

To Sales A/c  $211,999

To Inventory A/c  $146,000

(To record the lease)  

Cash A/c Dr. $32,207  

To Lease receivable A/c  $32,207

(To record the first lease payment)  

12/31/20 Interest receivable A/c Dr. $10787.52  

To Interest revenue A/c

[($211,999 - $32,207) × 6% rate]

$10,787.52

(To record interest receivable on the amount after first annual payments)  

1/1/2020 Cash A/c Dr. $32,207  

To Deposit Liability A/c  $32,207

( To record the collectibility of the lease payments was not probable for Blossom)

1/1/2020 Inventory A/c Dr. $1,470  

To Gain on Lease A/c  $1,470

The computed lease receivable for Blossom is $201,108.44. Journal entries will include recording the lease payment and the interest revenue. If collectability is not probable, only lease revenue is recognized as payments are received. If at the end of the lease the machine has a fair value of $1,470, an entry is made to recognize this.

The lease receivable represents the current value of the lease payments that Blossom Company expects to receive over the 8-year lease term. The lease payments are an annuity due as they are received at the beginning of each year. As such, the amount of the lease receivable can be calculated as follows:

Lease Receivable = Lease Payment * ((1 - (1 + Interest Rate) ^ - Lease Term) / Interest Rate)

Plugging in the given values:

Lease Receivable = $32,207 * ((1 - (1 + 6%) ^ -8) / 6%) = $201,108.44.

The necessary journal entries for Blossom in 2020 will include:

However, if the collectability of the lease payments was not probable for Blossom, the company would only recognize revenue as the payments are received. Thus, the only journal entry in 2020 would be:

January 1, 2020: Debit Cash $32,207, Credit Lease Revenue $32,207.

Finally, at the end of the lease term, if Blossom finds that the machine has a fair value of $1,470, the company would make the following entry:

Debit Equipment $1,470, Credit Gain on Return of Leased Equipment $1,470 (assuming Blossom had fully depreciated the machine by this time).

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Answer:

1. $41,100

2. $40,580

3. $28,100

Explanation:

1. Sales volume increase by 40 units

Total sales                           $229,400

7,440 × $31

Less: Variable Expense        $133,200

7,440 × $18                                                      

Contribution margin              $96,200

Less: Fixed expenses            $55,100

Net operating income           $41,100

2. Sales volume decreases by 40 units

Sales Volume                         $228,160

7,360 × $31

Less: Variable expense          $132,480

7,360 × $18

Contribution margin                $95,680

Less: Fixed expenses            $55,100

Net operating income            $40,580

3. Sales volume is 6,400 units

Total sales                             $198,400

6,400 × $31

Less: Variable expense        $115,200

6,400 × $18

Contribution margin                $83,200

Less: Fixed expenses            $55,100

Net operating income            $28,100

Answer:

A. $45,000

Explanation:

We have to use bank reconciliation statement to find the adjusted balance per bank at the end of month. Although we do not have cash balance, we will use the bank part to adjust the bank balance.

Bank balance as per month end     $54,000

Add: Deposit in transit                      $6,000

                                                          $60,000

Less: Outstanding check                $(15,000)

Adjusted bank balance                  $45,000

Note: Non-sufficient funds will be deducted from cash book.

Therefore, option A is the answer.

Answer: 665000

Explanation:

N/a

Answer: 45 months

Explanation:

Credit owed $7200

Monthly payment $225

APR annaully 18.4%

Monthly APR = 18.4/12 = 1.533%

SOLUTION

1st Month interest payment

1.533% x $7200 / 100 = $110.40

Principal paid (monthly payment - interest paid) = $225 - $110.40 = $114.60

Balance ( principal - principal paid) = 7200 - 114.60 = $7085.40

2nd Month interest payment

1.533% x $7085.40 / 100 = $108.64

Principal paid (monthly payment - interest paid) = $225 - $108.64 = $116.36

Balance ( principal - principal paid) = $7085.40 - $116.36 = $6969.04

By following this step up to the 45th month you get $74.74 as the monthly payment this sums up to.

Month interest payment

1.533% x $74.74 / 100 = $1.15

Principal paid (monthly payment - interest paid) = $75.88 - $1.15 = $74.74

Balance ( principal - principal paid) = $74.74 - $74.74 = $0

The payment would be completed at exactly 45months

Answer:

                                                  January    February    March    Total

Beginning Cash Balance          3,100        3,100          3,100      9,300

Cash Receipts                           22,500     28,000      42,500   93,000

Cash Available                          25,600     31,100        45,600   102,300

Cash Payments:

All Expenses except interest   32,000     33,000      38,000    103,000

Interest                                      0               87               134           221

Total Cash Payments               32,000     33,087       38,134      103,221

Ending Cash Balance before   (6,400)      (1,987)        7,466       (921)

Financing

Minimum Cash Balance Desired  (3,100)    (3,100)     (3,100)     (9,300)

Projected Cash Excess (Deficiency) (9,500)   (5,087)   4,366    (10,221)

Financing:

Borrowing                            9,500        5,087            -             14,587

Principal Payments               0               0               (4,366)        (4,366)

Total effects of Financing   9,500        5,087       (4,366)        10,221

Ending Cash Available        3,100        3,100         3,100          9,300

It is mentioned that the company will raise the exact amount of deficiency at the beginning of next month so any deficiency in January will be raised on 1st of February and any excess cash will be used to repay the principal amount.

Interest = Amount raised * Rate * Month

Interest due in Feb. = 9,500(Raised) * 14% * 1/12 months

Interest due in Feb. = 9,500(Raised) * 0.14 * 1/12 months = $110.83

Interest Due in March = (9,500+5,087) * 14% * 1/12 months

Interest Due in March = 14,587 * 0.14 * 0.083 months = $169.5

Answer:

$600

Explanation:

Normal selling price for baskets of dried fruits = $20

No. of baskets ordered = 150

At this price, the total selling revenue will be =$20*150 =$3000

Variable cost = $11*150 =$1650

Manufacturing overhead cost = $6*150 =$900

Income at a selling price of $20 = $3000-$(1650+900)=$450

For the special order

Selling price= $20

Total selling revenue =$16*150=$2400

Income at a selling price of $16 = $2400-$2550 = -$150 loss

The opportunity cost of this decision will be leaving a profit of $450 and obtaining a loss of $150

Total opportunity cost that must be considered in the incremental analysis for this decision =$450 +$150 =$600

The total opportunity cost for Fruit First is the lost profit on the displaced orders, which is 150 baskets x $9 lost contribution margin per basket, amounting to $1350.

The total opportunity cost for Fruit First in accepting Carol Costellano's special order at a special price involves calculating the loss from the reduced price per unit and the cost of cancelling existing orders. To fill the special order at $16 per unit instead of the regular $20, the company already incurs a lost contribution margin of $4 per unit (the difference between the usual selling price and the special order price). Since the variable cost is $11 per unit, the contribution margin on the regular orders would have been $9 per unit ($20 - $11). However, because the company is operating at full capacity, the opportunity cost also includes the profit forgone from the orders that must be canceled to accommodate this special order. If the fixed manufacturing overhead is $6 per unit and is unrecoverable, this cost should not figure into the incremental analysis for the special order as it is a sunk cost, assuming the fixed overhead does not increase because of the special order.

For 150 baskets, the total opportunity cost would therefore involve the lost profit on the displaced regular orders: 150 baskets  imes $9 lost contribution margin per basket = $1350. The opportunity cost is the foregone profit from the orders that are cancelled to take on the special order.

Answer:

Tablets are used by a majority of consumers. Although the tablets underwent a major advance from 2020 to 2021, the price of the tablets remained the same. Therefore, the CPI would largely remain the same as the price of tablets remained the same.

Unchanged CPI

Answer:

1. Total Annual Cash Inflows = 5000

2. Discount Factor = 3.72

3. New Machine's internal rate of return = 16%

Explanation:

Note: the question is incomplete and it lacks essential data to be used in part 4. Without the exhibits mentioned in the questions, it is not possible to solve this question completely. We will be solving it till part 3.

1) What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

Answer:

In this we have to calculate the total annual cash inflows and the formula to calculate it is mentioned below:

Total Annual Cash Inflows = Savings in Part Time help annually + Additional contribution Margin from Expected Sales.

Total Annual Cash Inflows = 3800  + ( 1000 x 1.20)

Total Annual Cash Inflows =  3800 + 1200

Total Annual Cash Inflows = 5000

2. What discount factor should be used to compute the new machine’s internal rate of return?

Answer:

Formula to calculate the Discount factor:

Discount Factor = Price of new machine/ annual cash inflow

Price of new machine = 18600 USD

Annual cash inflow = 5000

Discount Factor = 18600 /5000

Discount Factor = 3.72

3.  What is the new machine’s internal rate of return?

Answer:

As, it can be seen from the exhibits (which are missing from this question)  that the discount factor for 6 years is nearly closest to 16%, hence the new machine's internal rate of return = 16%

Note: the question is incomplete and it lacks essential data to be used in part 4. without the exhibits mentioned in the questions. It is impossible to solve further.

The total annual cash inflow is $5,000. There isn't enough information provided to calculate the discount factor and the Internal Rate of Return (IRR). The salvage value will also change the calculation.

1. To calculate the total annual cash inflows, we add the cost savings from reducing part-time help and the additional contribution from the sale of new donuts. The cost saving is $3,800. The additional contribution is the number of dozens of new donuts (1,000) times the contribution margin per dozen ($1.20), which is $1,200. So, the total annual cash inflows are $3,800+$1,200=$5,000.

2. The question does not provide enough information to determine the discount factor. Normally, it would either be provided or calculated based on a given discount rate (interest rate).

3. The Internal Rate of Return (IRR) also cannot be determined without either the net present value at a specific discount rate or the cash inflows for each year given. The IRR is the discount rate that makes the Net Present Value (NPV) of a project zero.

4. With a salvage value, the calculation would change, as the salvage value is a one-time cash inflow at the end of the machine’s life. Again, without specific annual cash inflows, it is impossible to accurately calculate the IRR.

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Every transaction will have effects on the financial statements of the organization. The effect can be on more than one financial statement.

a. Rent :

b. Insurance :

c. Office Supplies :

d. Depreciation :

e. Un billed Fees :

f. Unpaid Wages :

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Financial adjustments impact both the income statement and balance sheet, altering net income and account values. Taxable income is a key factor in these adjustments, and the merchandise trade balance, determined by exports and imports, affects the financial statements.

To evaluate the impact of financial adjustments on income statements and balance sheets, it's essential to recognize how each adjustment affects these financial documents. When identifying the effects on net income, adjustments either increase or decrease the profitability as displayed in the income statement. For the balance sheet, adjustments alter the value of assets, liabilities, or equity.

Consider taxable income, which is calculated by subtracting deductions and exemptions from the adjusted gross income. Different tax rates apply to different income levels, which could lead to further adjustments. Remember, the calculation of net income is influenced by various components, including tax rates and credits, as well as any alternative minimum tax.

When focusing on the merchandise trade balance, a few steps are integral. Step 1 requires entering the export amount of goods and services; Step 2, recording imports; and Step 3 marks the entry of income payments under exports. The merchandise trade balance (Step 9), for example, is obtained by subtracting the value of imports from exports, with unilateral transfers also affecting the balance.

These transactions not only affect the overall trade balance but also have implications for the national income and subsequently the tax computations, which could adjust the net income. It is vital to carefully identify each adjustment to accurately reflect its impact on both the income statement and balance sheet accounts.

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