Answer:
$206000.
Explanation:
Given: Asset purchase value = [tex]\$ 1090000[/tex]
Residual value after five years= [tex]\$ 60000[/tex]
Estimated useful life of asset= five years.
Now, we will calculate depreciation per year using straight line method.
Depreciation= [tex]\frac{(purchased\ value\ of\ asset - residual\ value)}{estimated\ useful\ life\ of\ asset}[/tex]
⇒ Depreciation = [tex]\frac{(1090000 - 60000)}{5} = \frac{1030000}{5}[/tex]
∴ Depreciation expense per year = [tex]\$ 20600[/tex]
The annual depreciation expense for the machine, using the straight-line method of depreciation, is $206,000 per year.
Explanation:The straight-line method of depreciation spreads the cost of the asset evenly over its useful life. To calculate the annual depreciation expense, we first need to subtract the estimated residual value of the machine at the end of its useful life from its initial cost.
This gives us the total amount that will be depreciated over the five years, or $1,090,000 - $60,000 = $1,030,000.
To find the annual depreciation expense, we then divide this total by the number of years in the machine's useful life:$1,030,000 ÷ 5 = $206,000. Thus, the annual depreciation expense for the machine is $206,000 per year.
Learn more about Depreciation calculation here:https://brainly.com/question/34339610
#SPJ11
Labor data for making one pound of finished product in Curling Co. are as follows: Price-hourly wage rate $11.00, payroll taxes $1.80, and fringe benefits $1.20. Quantity-actual production time 1.1 hours, rest periods and clean up 0.25 hours, and setup and downtime 0.15 hours. Compute the following. (Round answers to 2 decimal places, e.g. 52.75.) Standard direct labor rate per hour Standard direct labor hours per pound hours Standard cost per pound.
Answer:
Standard direct labor rate per hour $14
Standard direct labor hours per pound hours 1.5 hours
Standard cost per pound $21
Explanation:
The computation is shown below:
For Standard direct labor rate per hour:
= Price-hourly wage rate + payroll taxes + fringe benefits
= $11 + $1.80 + $1.20
= $14
For Standard direct labor hours per pound hours:
= Quantity-actual production time hours + rest periods and clean up hours + setup and downtime hours
= 1.1 + 0.25 + 0.15
= 1.5 hours
For Standard cost per pound:
= Standard direct labor rate per hour × Standard direct labor hours per pound hours
= $14 × 1.5 hours
= $21
Which of the following is least likely to be considered a risk assessment procedure?A. Analytical procedures.B. Inspection of documents.C. Observation of the counting of inventory.D. Observation of the performance of certain accounting procedures.
Answer:
C. Observation of the counting of inventory.
Explanation:
Risk assessment procedures involve all the steps that represent the evaluation of procedures which are company specific and not individual item specific.
These assessments are done in order to ensure the accounting procedures are fair that are followed by the company.
Thus, the observation of counting of inventory is substantative in nature and not investigating like, risk assessment test.
All other steps mentioned are part of risk assessment procedure.
Final answer:
Among the choices given for risk assessment procedures, observation of the performance of certain accounting procedures is least likely to be considered a direct risk assessment method as it is more about monitoring existing controls rather than identifying new risks.
Explanation:
The question asks which of the listed options is least likely to be considered a risk assessment procedure. In the context of a risk assessment process, which involves identifying and quantifying potential risks, certain procedures are standard. These include analytical procedures, inspection of documents, and observation of various activities such as the counting of inventory or the performance of accounting procedures. Among the options given:
Analytical procedures (A) are often used to understand financial data and spot inconsistencies or potential areas of risk.
Inspection of documents (B) is crucial for verifying the accuracy of records and identifying discrepancies that might indicate risk.
Observation of the counting of inventory (C) helps ensure the physical assets match the records, revealing potential risk of loss or theft.
Observation of the performance of certain accounting procedures (D) can identify inefficiencies or irregularities that may pose financial risk.
However, when comparing these options, observation of the performance of certain accounting procedures (D) is less a direct "risk assessment" method and more a procedure for ensuring that existing controls are being followed. It is more about monitoring than assessing new risks. Therefore, it is considered least likely to be a risk assessment procedure compared to the others listed.
A fall in the price level:____________.
A. reduces the value of money in peoples' pockets, so people buy less goods.
B. reduces the value of money in peoples' pockets, so people buy more goods.
C. increases the value of money in peoples' pockets, so people buy more goods.
D. increases the value of money in peoples' pockets, so people buy less goods.
Answer:
C. increases the value of money in peoples' pockets, so people buy more goods.
Explanation:
If there is a general decline in price levels, there is a deflation.
When there's a fall in price, the same amount of money can buy more goods and services. Therefore, the value of money has increased and aggregate demand will increase.
You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 6% nominal interest, compounded semiannually, how much will be in your account after 3 years? One year from today you must make a payment of $4,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 6% nominal interest compounded quarterly. How large must each of the two payments be?
Answer:
Check the calculation below.
Explanation:
a) Amount in account after 3 years:
= $1,000 (1+ 0.03)5 + $1,000 (1+ 0.03)4+ $1,000 (1+ 0.03)3 + $1,000 (1+ 0.03)2 + $1,000 (1+ 0.03)
= $1,159.27 + 1,125.51 + 1,092.73 + 1,060.90 + 1,030
= $5,468.40
b) Calculation of amount of payment:
Let the amount of each of two payment be "P".
Now, $4,000 = P (1 + 0.015)3 + P (1 + 0.015)2
or,$4,000 = 1.0457 P + 1.0302 P
or, P = $4,000 / 2.0759
or, P = 1,927 (Approx)
To have $10,000 in ten years with 10% interest compounded annually, you need to deposit $3,874.38.
Explanation:To calculate how much money you need to put into a bank account to have $10,000 in ten years with 10% interest compounded annually, you can use the formula for compound interest, which is A = P(1 + r/n)^nt. In this case, P is the principal amount (the initial deposit), r is the interest rate (10% or 0.10), n is the number of times interest is compounded per year (1 for annually compounded interest), and t is the number of years (10).
Substituting these values into the formula, we get A = P(1 + 0.10/1)^(1*10) = 10,000. Rearranging the formula to solve for P, we have P = A / (1 + r/n)^nt. Plugging in the known values, we calculate P = 10,000 / (1 + 0.10/1)^(1*10) = $3,874.38.
Learn more about Compound interest here:https://brainly.com/question/14295570
#SPJ3
The payroll register of Charbroil Company indicates $1,200 of social security tax withheld and $300 of Medicare tax withheld on total salaries of $20,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $7,000, at the federal rate of 0.8% and the state rate of 5.4%. What is the total amount of payroll tax expense?a. $1,878b. $1,500c. $1,556d. $1,934
Answer:
d. $1,934
Explanation:
Total amount of payroll tax expense=Social security tax withheld+Medicare tax withheld +State and federal unemployment compensation taxes on earnings=1200+300+.062*7000=$1934 (d. $1,934)
During the latest year. XYZ Corporation has total sales of $400,000. net income of 10000, and its year end total sses were S 500 000. The firm's total debt to total assets ratio was 30%, what is firm's profit margin? (Enter your answers as a decimal rounded to 4 decimal places, not a percentage. For example, enter 0. 0843 instead of 8.43 Your Answer: Answer D View hint for Question 23 Question 24 (1 point) If a company's ROA is 9% and its total long-term debt to total assets ratio is 40%, what is its ROE (return on. equity)? (Enter your answers as a decimal rounded to 4 decimal places, not a percentage For example enter 00843 instead of 843%) Your Answer:
Answer:
2.50%; 15%
Explanation:
Profit margin = (Net income ÷ sales) × 100
= ($10,000 ÷ $400,000) × 100
= 2.50%
Total long-term debt to total assets ratio = 40%
So,
= Total equity ÷ Total assets
= 60%
Equity multiplier = Total assets ÷ Total equity
= 1.66667
ROA = 9%
ROE (return on equity):
= (Profit margin × Total assets turnover) × Equity multiplier
= ROA × Equity multiplier
= 9% × 1.66667
= 15%
Final answer:
The profit margin of XYZ Corporation is 0.0250. To find it, divide the net income of $10,000 by the total sales of $400,000. Similarly, a firm's accounting profit with a sales revenue of $1 million and various costs would be $50,000.
Explanation:
To calculate the profit margin of XYZ Corporation, we divide its net income by its total sales. The profit margin formula is: Profit Margin = (Net Income / Total Sales).
In this case, XYZ Corporation's net income is $10,000 and its total sales are $400,000. Therefore, the profit margin would be calculated as follows: Profit Margin = ($10,000 / $400,000) = 0.025. So, the profit margin, when entered correctly as a decimal, is 0.0250.
For the self-check question regarding the firm with sales revenue of $1 million, the accounting profit is found by subtracting the total costs (labor, capital, and materials) from the sales revenue. The firm's accounting profit would be: $1 million - ($600,000 + $150,000 + $200,000) = $1 million - $950,000 = $50,000.
Cynthia Knott's oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $9 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $2 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. How many pounds should she order each day?
Answer:
103
Explanation:
Please see attachment .
The number of pounds to be ordered each day is 103 pounds. This is calculated using the news vendor model.
What is the news vendor model?The news vendor model is used to determine the optimum inventory level in case of uncertainties. The level of inventory is calculated using z score of the probability. The probability under this model can be calculated as:
[tex]\rm P = \dfrac{Co}{Cu+Co}[/tex]
Where Co is the cost of actual Utilization, and Cu is the cost of under Utilization.
[tex]\rm Co = Selling\:price - Cost\\\\\rm Cu = Cost - Receipt\:from\:sale\:of \:unsold\:stock[/tex]
The quantity can be calculated as:
[tex]\rm Quantity = Mean + (Standard \:deviation \times z\: score\: of \:probability)[/tex]
The z score of probability can be calculated from the table.
Given:
Mean is 100
Standard deviation is 15
Cost is $5
Selling price is $9
Selling price of unsold stock is $2
Therefore Co and Cu will be:
[tex]\rm Co = Selling\:price - Cost\\\\Co = \$9 - \$5\\\\Co= \$4[/tex]
And,
[tex]\rm Cu = Cost - Receipt\:from\:sale\:of \:unsold\:stock\\\\ Cu = \$5 - \$2\\\\ Cu = \$3[/tex]
The probability will be:
[tex]\rm P = \dfrac{Co}{Cu+Co}\\\\\rm P =\rm \dfrac{\rm Co}{\rm Cu+Co}\\\\\rm P = 0.5914[/tex]
The z score of this probability is 0.18
Therefore the quantity will be:
[tex]\rm Quantity = Mean + (Standard \:deviation \times z\: score\: of \:probability)\\\\\rm Quantity = 100+ (15\times 0.18)\\\\\rm Quantity = 100+ 2.7\\\\\rm Quantity = 102.7 \\\\\rm Quantity = 103\:pound[/tex]
Learn more about news vendor model here:
https://brainly.com/question/3964633
The rise of Walmart as one of the world's largest corporations has brought the concept of:
A) reverse auctions
B) target return on investment pricing
C) price points
D) high/low pricing
E) everyday low pricing
Answer:
correct option is E) everyday low pricing
Explanation:
solution
Rise of Walmart brought the concept of Everyday low pricing as we all aware everyone need good quality product in low price and Walmart is one the world largest corporation that give almost everyday attractive offer to their customers Incredible Prices on many different quality brands
they giver offer according to trends for autumn winter to attract all customers
so we can that here correct option is E) everyday low pricing
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.
Sales Mix Unit Contribution Margin
Lawnmowers 20 % $32
Weed-trimmers 50 % $24
Chainsaws 30 % $45
Yard Tools has fixed costs of $4,944,500.
Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use the Weighted-Average Unit Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales Mix Unit Contribution Margin
Lawnmowers 20 % $32
Weed-trimmers 50 % $24
Chainsaws 30 % $45
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
Break-even point (units)= 4,944,500/ ( 0.20*32 + 0.5*24 + 0.30*45)
Break-even point (units)= 155,000 units
Each product:
Lawnmowers= 0.20*155,000= 31,000
Weed-trimmers= 0.50*155,000= 77,500
Chainsaws= 0.30*155,000= 46,500
Robert Lewis Stevenson’s story, Imp in the Bottle, features a fabulous bottle whose owner will be granted any wish by the imp who lives within the bottle. The problem is that anyone who buys the bottle must sell it at a lower price or else suffer eternity in hell. [If you do not believe in hell, assume that you do for the purposes of this question.] Assuming the smallest possible unit of currency is one cent, would you buy the bottle if it were offered to you for $1,000? Explain your reasoning.
Answer:
Yes.
Explanation:
I would buy the bottle as anything can be asked for from the bottle and it will come true. Hence once the bottle is bought anything can be wished for and then the bottle can be sold off at a lower price than $1000.
Brutus Inc is considering the purchase of a new machine for $500,000. It is expected that the equipment will generate annual cash inflows of $100,000 and annual cash outflows of $37,500 over its 10 year life. Annual depreciation is $50,000. Compute the cash payback period.
Answer:
8 years
Explanation:
Given: Cost of new machine= $500000.
Annual cash inflow= $100000.
Annual cash outflow= $37500.
First, we will calculate annual payback or cash inflow.
Annual payback= [tex](cash\ inflow - cash\ outflow)[/tex]
∴Annual payback= [tex](\$ 100000 - \$ 37500)= \$ 62500[/tex]
Now computing cash payback period.
Cash payback period= [tex]\frac{initial\ investment}{annual\ payback}[/tex]
Cash payback period= [tex]\frac{500000}{62500} = 8\ yrs[/tex]
∴ Cash payback period is 8 years.
When payback period is short then investment is more attractive.
A company works 320 days per year and has an annual demand of 2080 units of product desires to set an reorder point that will cover demand during lead time. If the lead time is 4 working days, what should the reorder point be? Group of answer choices
6.5 units
14 units
20 units
26 units
160 units
Answer:
D. Re-order point = 26 days
Explanation:
Given,
Annual Demand, D = 2,080 units
Number of working days = 320 days
Lead time = 4 days
We know,
Re-order point = (Annual demand/Number of working days)*Lead Time
Re-order point = (Annual demand/Number of working days)*Lead Time
Re-order point = (2,080/320)*4
Re-order point = (6.5*4)
Re-order point = 26 days
Therefore, the answer choice is D.
As there is no maximum and average lead time and no replenishment stock, I exclude the safety stock from the re-order point calculation.
In vendor-managed inventory systems,A. corporations send information to retail customers, bypassing wholesalers and retailers.B. companies send information to cooperatives.C. customers send information to retailers.D. manufacturers send sales information to the retailer.E. retailers send sales information to the manufacturer.
Answer: Option (E)
Explanation:
Vendor-Managed Inventory is referred to as the theory which is based and inspired by the assimilation in the supply chain management in association with the system ambulation. Vendor managed inventory is being utilized under the inventory management in order to equip oneself with the effect of bullwhip effect .
A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000; depreciation is $51,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? (Input all amounts as positive values.)
Answer:
The projected Net Income is $70,784
Explanation:
The Pro- forma income Statement
Working Note:
Variable cost = Sales × 44%
= $585,000 × 44%
= $257,400
EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation
= $585,000 - $257,400 - $187,000 - $51,000
= $89,600
Net Income = EBT × Tax rate
= $89,600 × 21%
= $70,784
Final answer:
By calculating the total variable costs, deducting them along with the fixed costs and depreciation from sales, and subtracting the taxes from EBIT, the projected net income for the proposed investment is found to be $70,784.
Explanation:
Pro Forma Income Statement Calculation
To calculate the projected net income for the proposed investment, we need to follow these steps:
Calculate total variable costs by multiplying projected sales by the variable cost percentage. In this case, $585,000 * 44% = $257,400.
Subtract variable costs and fixed costs from sales to determine the earnings before interest, taxes, depreciation, and amortization (EBITDA). Therefore, $585,000 - $257,400 - $187,000 = $140,600.
Next, subtract depreciation to find earnings before interest and taxes (EBIT). Here, $140,600 - $51,000 = $89,600.
Now, calculate the taxes by multiplying EBIT by the tax rate. So, $89,600 * 21% = $18,816.
Finally, subtract taxes from EBIT to determine the projected net income. Thus, $89,600 - $18,816 = $70,784.
The projected net income for the new investment is $70,784.
In the short run, the quantity of output that firms supply can deviate from the natural rate of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. Suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. Many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will _______(Remain the same/fall/rise), and firms that rely on catalogs will respond by _______ (Increasing/Reducing) the quantity of output they supply. If enough firms face high costs of adjusting prices, the unexpected decrease in the price level causes the quantity of output supplied to ______ (Fall below/Rise above) the natural rate of output in the short run.
Answer:
The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will remain the same, and firms that rely on catalogs will respond by increasing the quantity of output they supply.
If enough firms face high costs of adjusting prices, the unexpected decrease in the price level causes the quantity of output supplied to rise above the natural rate of output in the short run.
Explanation:
The inputs are based on the sticky-price theory, with explaination as below:
"In the short run, the quantity of output that firms supply can deviate from the natural rate of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level."
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $64,000 per year; operating costs with the new machine are expected to be $50,000 per year. The new machine will cost $70,000 and will last for five years, at which time it can be sold for $3,000. The current machine will also last for five more years but will not be worth anything at that time. It cost $34,000 three years ago but is currently worth only $5,000. Assuming a discount rate of 7%, what is the incremental net present value of replacing the current machine with the new machine?
Answer:
7.915
[tex]23313 {6}^{2} [/tex]
Van Den Borsh Corp. has annual sales of $68,735,000, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The firm's cost of goods sold is 85% of sales.
The company makes all purchases on credit and has always paid on the 30th day.
However, it now plans to take full advantage of trade credit and to pay its suppliers on the 40th day. The CFO also believes that sales can be maintained at the existing level but inventory can be lowered by $1,946,000 and accounts receivable by $1,946,000.
What will be the net change in the cash conversion cycle, assuming a 365-day year?
Round to the nearest whole day.
a. –25 days
b. –31 days
c. –27 days
d. –32 days
Answer:
The answer is d. -32 days.
Explanation:
*The before change cash conversion cycle = Days of inventory outstanding + Days of receivables outstanding - Days of payable outstanding.
in which:
Days of inventory outstanding = Average inventory / Cost of good sold x 365 = ( 15,012,000 / ( 68,735,000 x 0.85) ) x 365 = 94 days
Days of receivables outstanding = Average Receivables / Revenue x 365 = ( 10,008,000 / 68,735,000 x 365 = 53 days
Days of payable = 30 days
=> Before change cash conversion cycle = 117 days.
* The after-change cash conversion cycle is calculated with the same formula, however with estimated changes be applied in the formula as followed:
Days of inventory outstanding = Average inventory / Cost of good sold x 365 = ( (15,012,000 - 1,946,000) / ( 68,735,000 x 0.85) ) x 365 = 82 days
Days of receivables outstanding = Average Receivables / Revenue x 365 = ( (10,008,000 - 1,946,000) / 68,735,000 x 365 = 43 days
Days of payable = 40 days
=> After-change cash conversion cycle = 82 + 43 - 40 = 85 days
=> Net change is 85 - 117 = -32 days
Final answer:
The net change in the Cash Conversion Cycle for Van Den Borsh Corp., after adjusting for inventory and accounts receivable reductions and the extended payment period to suppliers, is a decrease of 31 days which directly influences cash flows. This is computed by calculating the initial and new Days Inventory Outstanding and Days Sales Outstanding, along with the change in Days Payable Outstanding, and comparing the initial and new CCC values. The correct answer is option (B).
Explanation:
The Cash Conversion Cycle (CCC) measures the time taken between the outlay of capital and the collection of revenue from the sales of goods. It is calculated by adding the Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and subtracting the Days Payable Outstanding (DPO). In this case, we need to first calculate these components using the provided information:
Days Inventory Outstanding (DIO) is calculated as (Average Inventory / Cost of Goods Sold) * 365. Days Sales Outstanding (DSO) is calculated as (Average Accounts Receivable / Total Sales) * 365. Days Payable Outstanding (DPO) is currently 30 days, since the company pays on the 30th day, and will become 40 days after they decide to pay on the 40th day.
Once we have the initial CCC value using the original inventory and receivables levels, we compute a new CCC value using the reduced levels. The net change in the CCC will inform us about the impact on the cash flows. Let's calculate each component:
Cost of goods sold (COGS) = $68,735,000 * 85% = $58,424,750
Original DIO = ($15,012,000 / $58,424,750) * 365 = 93.8 days (rounded to nearest whole day)
New DIO with reduced inventory ($15,012,000 - $1,946,000):
New Inventory = $15,012,000 - $1,946,000 = $13,066,000
New DIO = ($13,066,000 / $58,424,750) * 365 = 81.6 days (rounded to nearest whole day)
Original and new DSO are calculated using total sales and average accounts receivable:
Original DSO = ($10,008,000 / $68,735,000) * 365 = 53.2 days (rounded to nearest whole day)
New DSO with reduced receivables ($10,008,000 - $1,946,000):
New Receivables = $10,008,000 - $1,946,000 = $8,062,000
New DSO = ($8,062,000 / $68,735,000) * 365 = 42.8 days (rounded to nearest whole day)
Change in DPO = 40 days - 30 days = +10 days
Initial CCC = DIO + DSO - DPO = 93 days + 53 days - 30 days = 116 days
New CCC = New DIO + New DSO - New DPO = 82 days + 43 days - 40 days = 85 days
Net change in the CCC = New CCC - Initial CCC = 85 days - 116 days = -31 days. Therefore, the correct answer is b. – 31 days.
On January 1, the Matthews Band pays $66,000 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the straight-line method.
Answer:
Annual depreciation= $16,250
Explanation:
Giving the following information:
On January 1, the Matthews Band pays $66,000 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (66,000 - 1,000)/4= $16,250
The first-year depreciation using the straight-line method is $16,250.
Explanation:The first-year depreciation using the straight-line method can be calculated by subtracting the estimated salvage value from the initial cost of the equipment and then dividing the result by the estimated useful life of the equipment. In this case, the initial cost is $66,000, the estimated salvage value is $1,000, and the estimated useful life is 4 years.
To find the first-year depreciation, we use the formula: (Initial cost - Salvage value) / Useful life.
Therefore, the first-year depreciation is ($66,000 - $1,000) / 4 = $16,250.
Learn more about first-year depreciation using the straight-line method here:https://brainly.com/question/33067253
Twenty-two-year-old Chad has just graduated from college. He wants to buy a new car to celebrate. He expects to be able to make payments through his new job. His parents tell him that they will help him out, if he has difficulty making payments down the road, so he buys the car. Shortly thereafter, he loses his job, and can’t make the car payment. He tells the dealer that his parents have agreed to cover for him, but they have had unexpected home repair expenses, and it would be a hardship for them to cover for Chad. Which of the following is true?A. The dealer cannot legally require the parents to make the payment.B. The dealer can legally require the parents to make the payment.C. Only Chad can legally require his parents to make the payment.D. none of the above.
Answer:
A. The dealer cannot legally require the parents to make the payment.
Explanation:
According to the law the dealer cannot legally require the parents to make the payment because the merchandise is not legal, therefore there is no legal contract.
Webster Corporation's budgeted sales for February are $334,000. Webster pays sales representatives a commission of 6% of sales dollars. The company pays a sales manager a monthly salary of $5,300 and expects advertising expense of $2,900 per month. Compute the total budgeted selling expenses for February.
O $28,240.
O $20,040.
O $8,200.
O $25,340.
O $22,940.
Answer:
Compute the total budgeted selling expenses for February.
O $28,240.
Explanation:
$ 334,000 Sales
$ 20,040 Sales representatives a commission
$ 5,300 Sales manager salary
$ 2,900 Advertising expense
Total Budgeted Selling Expenses : $20,040 + $5,300 + $2,900 = $28,240
Gregory Trout has just received a memo explaining that because of his department's success with the newly developed Trout, Inc., that his request for three new employees has been approved. Gregory now faces the challenge of working with the areas of human resource management in recruiting, selecting, training and maintaining eFective employees. In recruiting and selecting employees for the new positions, Gregory will apply which human resource management goal?
a. Implementing strategies
b. Managing talent
c. Maintaining the company mission
d. finding the right people
e. Controlling strategies
Answer:
d. finding the right people
Explanation:
As the George's department had successfully satisfied the needs of the new developed Trout , Inc. IT might happen that work will be extended. This will require Goerge to increase the workforce those are having skill sets that matches the Trout, Inc. needs.
Thus, while recruiting and seelcting for the new positon Georgy will apply HRM goal of finding the right set of people for the required project.
JacksonJackson Bank lends JabbourJabbour Clothing Company $125 comma 000125,000 on September 1. JabbourJabbour signs a $125 comma 000125,000, 6%, six-month note. The journal entry made by JabbourJabbour on December 31, its fiscal year-end, is
Answer:
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $3,000
To Interest payable A/c $3,000
(Being interest is recorded)
The computation of the interest expense is shown below:
= Principal × rate of interest × number of months ÷ total number of months in a year
= $125,000 × 6% × (4 months ÷ 12 months)
= $2,500
The four-month is calculated from the September 1 to December 31
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: The locations area: Atlanta ($80,000, $20) and Phoenix ($140,000, $16) . The first number with in the parentheses is the fixed cost and the second number is the variable cost per unit If the annual demand is 20,000 units, what would be the cost advantage of the better location? Select one: A. $60,000 B. $80,000 C. $480,000 D. $20,000 E. $460,000
Answer:
D. $20,000
Explanation:
Considering the cost elements of Atlanta
Fixed cost = $80,000
Variable cost per unit = $20
Where 20,000 units are produced (to meet annual demands)
Total cost = 80,000 + (20000 × 20)
= 80,000 + 400,000
= $480,000
Considering the cost elements of Phoenix
Fixed cost = $140,000
Variable cost per unit = $16
Where 20,000 units are produced (to meet annual demands)
Total cost = 140,000 + (20000 × 16)
= 140,000 + 320,000
= $460,000
Comparing the cost of production in the two locations, the cost advantage of the better location (Phoenix)
= 480,000 - 460,000
= $20,000
Consider the following information about a business Diane opened last year: price = $20, quantity sold = 25,000; implicit cost = $255,000; explicit cost = $360,000. Assuming that all relevant costs and revenue are noted, what was Diane's accounting profit?
Answer:
Explanation: $140,000
Accounting profit is the difference between revenue and explicit cost.
Explicit costs are the actual costs incurred in the running of the business.
Revenue = price × quantity sold
= $20 × 25000 = $500,000
$500,000 - $360,000 = $140,000
Implicit costs are also referred as opportunity cost. They are used in calculating the economic profit.
Economic profit = Accounting profit - implicit cost
Franco converted a building from personal to business use in May 2016 when the fair market value was $72,500. He purchased the building in July 2013 for $116,000. On December 15 of this year, Franco sells the building for $58,000. On the date of sale, the accumulated depreciation on the building is $7,315. What is Franco’s recognized gain or loss on the sale?
Answer:
Total loss will be equal to $7185
Explanation:
We have given market value of the building = $72500
He sells the building at $58000
Accumulated depreciation = $7315
We have to find the loss or gain
In this case there will be loss as the market value is greater than the sell value
So loss will be equal to
Loss = Market value of building - sale value - accumulated depreciation
So loss = $72500-$5800-$7315 = $7185
So loss will be equal to $7185
Franco experiences a recognized loss of $50,685 on the sale of the building, calculated from the sale price minus the adjusted basis.
Explanation:When Franco converted the building from personal to business use in May 2016, the fair market value was $72,500. However, by the time he sold the building, it had depreciated, so he only received $58,000 for it. In order to evaluate his gain or loss, you need to calculate the adjusted basis which is the purchase price ($116,000) minus the accumulated depreciation ($7,315).
So, the adjusted basis would be $116,000 - $7315 = $108,685.
Then, the recognized gain or loss can be calculated as the sale price ($58,000) minus the adjusted basis ($108,685). Therefore, the recognized loss Franco experiences is $58,000 - $108,685 = -$50,685.
Learn more about Recognized financial loss here:https://brainly.com/question/31001004
#SPJ11
Divine Apparel has 4,000 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends.
The declaration of a dividend initially reduces retained earnings and creates a liability. When the dividend is paid, the liability is removed, and cash is reduced accordingly.
On October 1, the date of declaration, the following journal entry is made:
[tex]\[ \text{Dividends Payable} \quad 3,000 \][/tex]
[tex]\[ \text{Retained Earnings} \quad -3,000 \][/tex]
On October 15, the date of record, no journal entry is required since the dividends payable have already been recorded on the declaration date.
On October 31, the date of payment, the following journal entry is made:
[tex]\[ \text{Dividends Payable} \quad -3,000 \][/tex]
[tex]\[ \text{Cash} \quad 3,000 \][/tex]
When a company declares a cash dividend, it affects the company's financial statements. The declaration of a dividend creates a liability for the company, which is the amount that the company owes to its shareholders. This liability is recorded in an account called Dividends Payable.
On October 1, Divine Apparel declares a $0.75 per share dividend on 4,000 shares of common stock. To calculate the total amount of the dividend:
[tex]\[ \text{Total Dividend} = \text{Dividend per Share} \times \text{Number of Shares} \][/tex]
[tex]\[ \text{Total Dividend} = \$0.75 \times 4,000 \][/tex]
[tex]\[ \text{Total Dividend} = \$3,000 \][/tex]
The journal entry on October 1 records the dividend as a liability (Dividends Payable) and reduces the Retained Earnings by the same amount, since the dividend represents a distribution of the company's earnings to shareholders.
On October 15, the date of record, the company verifies which shareholders will receive the dividend. However, this does not require a journal entry because the liability was already recorded on the declaration date.
Finally, on October 31, when the dividend is paid, the company removes the liability by debiting Dividends Payable and crediting Cash for the same amount, which is $3,000. This reflects the cash outflow to pay the dividend to the shareholders.
Assume instead that the fair market value of the land was $87,000 and that of the building was $65,000. Determine Gerald's adjusted basis for the land and building. Gerald's basis for gain: Gerald's adjusted basis for the land is $. Gerald's adjusted basis for the building is $. Gerald's basis for loss: Gerald's adjusted basis for the land is $. Gerald's adjusted basis for the building is $.
Answer:
Please see attachment
Explanation:
Please see attachment
On October 1, 2018, Parker Company made a loan to one of its customers. The customer signed a 9-month note for $150,000 at 13%. Calculate the maturity value of the note. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
Maturity value = $164,625
Explanation:
given data
time = 9 month
principal = $150,000
rate = 13%
to find out
maturity value
solution
we get here Maturity value that is express as
Maturity value = Principle + interest ........................1
put here value we get Maturity value
Maturity value = $150,000 + ( $150,000 × 13% × [tex]\frac{9}{12}[/tex] )
Maturity value = $150,000 + $14,625
Maturity value = $164,625
Final answer:
The maturity value of the 9-month note for $150,000 at a 13% annual interest rate is $164,625 when rounded to the nearest dollar.
Explanation:
To calculate the maturity value of the note for Parker Company's customer, we must compute both the principal and the interest accrued over the 9-month period. The interest can be determined using the formula:
Interest = Principal imes rate imes time
In this case:
Principal = $150,000
Annual Interest Rate = 13%
Time = 9 months (9/12 of a year)
Firstly, we transfrom the annual interest rate into a monthly interest rate and then apply it to the 9 months:
Interest = $150,000 imes 0.13 imes (9/12)
Following the calculations to two decimal places:
Interest = $150,000 imes 0.13 imes 0.75 = $14,625
The total maturity value is found by adding the principal to the interest:
Maturity Value = Principal + Interest
Maturity Value = $150,000 + $14,625
Maturity Value = $164,625
Round to the nearest dollar:
Maturity Value = $164,625
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $780,000, and $16,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 3.5%. The ending balance of Accounts Receivable is ________.
Answer:
Bad debt expense = $28000
Ending balance = $4000
Explanation:
given data
Credit sales= $800000
Cash collection = $780,000
Write off = $16,000
rate = 3.5 %
to find out
ending balance of Accounts Receivable is
solution
first we get Bad debt expense that is express as
Bad debt expense = 800000 × 3.5%
Bad debt expense = $28000
and
Ending balance is express as
Ending balance = Credit sales - Cash collection - Write off ..............1
put here value
Ending balance = $800000 - $780,000 - $16,000
Ending balance = $4000
Final answer:
The ending balance of Accounts Receivable is calculated $32,000 by adding credit sales to the beginning balance, subtracting cash collections and write-offs, and then adjusting for the bad debts expense calculated by the percent-of-sales method.
Explanation:
The student asked about calculating the ending balance of Accounts Receivable when given the credit sales, cash collected, amount written off, and bad debts expense using the percent-of-sales method. To calculate the ending balance of Accounts Receivable, you must account for the beginning balance, add credit sales, subtract cash collections and write-offs, and adjust for the calculated bad debts expense.
Here's a step-by-step process:
Calculate the bad debts expense using the percent-of-sales method: $800,000 (credit sales) × 3.5% = $28,000.
Determine the amount of Accounts Receivable before the adjustment for bad debts: $800,000 (credit sales) - $780,000 (cash collected) - $16,000 (write-offs) = $4,000.
Add the bad debts expense to the Accounts Receivable before adjustment: $4,000 + $28,000 = $32,000, which is the ending balance of Accounts Receivable.
Brandon walked out of a team meeting with the understanding that none of the team could take vacation time for the next month. What was actually stated in the meeting was that the project was under a strict deadline, and an employee would need to have their part finished before taking vacation time. This is an example of which barrier to effective communication?
A) Bias
B) Lack of trust
C) Lack of engagement
D) Filtering
Answer:
D) Filtering
Explanation:
Filtering is the act of hearing what one expects or wants to hear instead of what was actually stated. In this case, Brandon assumed none of the team could take vacation time for the next month while what was really said is that only one employee would need to have their part finished before taking vacation time.
The answer is D) Filtering