Answer:
Ending Equity 235,000
Explanation:
assets = liabilities + equity
We post our know values to solve for equity
322,000 = 262,000 + equity
322,000 - 262,000 = equity
beginning equity 60,000
net income = revenues - expenses
635,000 - 329,000 = 232,000 net income
dividends 57,000
beginning equity + net income - dividends = ending equity
60,000 + 232,000 - 57,000 = 235,000 ending equity
A company has a selling price of $2,000 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $154 each. During November, the company sold 34,000 printers, and 440 printers were serviced under the warranty at a total cost of $59,000. The balance in the Estimated Warranty Liability account at November 1 was $31,000. What is the company's warranty expense for the month of November?
Answer:The company's warranty expense for the month of November is $157,080.
Explanation:
When the estimated amount is recognized-
Warranties expense A/c (Dr.) = $157,080
Estimated Warranty Liability (Cr.) = $157,080
When the repairs are actually paid, Estimated Warranty Liability will be Debited and Cash will be credited.so, The company's warranty expense for the month of November is $157,080.
i.e. (34,000 × 3% × $154 = $157,080)
Before Maria starts her first year of college, Fred promises to give her $5,000 when she graduates. She goes to college, borrowing and spending far more than $5,000. At the beginning of the spring semester of her senior year, she reminds Fred of the promise. Fred sends her a note that says, “I revoke the promise.” Is Fred's promise binding? Explain.
Final answer:
Fred's promise to Maria is likely binding, as Maria's attendance in college constitutes substantial performance. In contract law, once substantial performance is underway, a promisor typically cannot revoke the promise. Therefore, Fred is expected to honor his initial promise to Maria.
Explanation:
The question of whether Fred's promise is binding revolves around the concept of a unilateral contract. In a unilateral contract, one party makes a promise in exchange for a specific action by another party. Fred promised Maria $5,000 upon her graduation, but he attempted to revoke the promise before she fulfilled the condition. Traditionally, once the action that fulfills the conditions of the promise is underway—a concept referred to as substantial performance—the promisor cannot revoke the promise. Maria going through college can be seen as substantial performance, and thus Fred may be expected to honor his promise regardless of his intent to revoke it. This is consistent with principles from contract law, which might be exemplified by texts such as "LibreTexts™", where the importance of fulfilling contract terms and recognizing substantial performance is affirmed.
Rolla Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $125,000 and $100,000, respectively. The present value of cash inflows and outflows for the second alternative is $300,000 and $262,500, respectively.
Required
Calculate the net present value of each investment opportunity
Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.)
Indicate which investment will produce the higher rate of return.
Answer:
Alternative A will produce the best return.
It has a better present value index which means, the investment yield a better rate.
Explanation:
ALTERNATIVE (a)
125,000 - 100,000 = 25,000 NPV
ALTERNATIVE (b)
300,000 - 262,500 = 37,500 NPV
[tex]\frac{CashFlows \: PV}{initial \: investment} = PVI[/tex]
ALTERNATIVE (a)
125.000/100,000 = 1.25
ALTERNATIVE (b)
300,000/262,500 = 1.1429
To calculate the net present value of each investment alternative, subtract the present value of cash outflows from the present value of cash inflows. The present value index is calculated by dividing the present value of cash inflows by the present value of cash outflows. The second investment alternative offers a higher rate of return.
Explanation:The net present value (NPV) of an investment opportunity is the difference between the present value of cash inflows and the present value of cash outflows. To calculate the NPV, subtract the present value of cash outflows from the present value of cash inflows. For the first alternative, the NPV is $125,000 - $100,000 = $25,000. For the second alternative, the NPV is $300,000 - $262,500 = $37,500.
The present value index (PVI) is a measure of investment efficiency. It is calculated by dividing the present value of cash inflows by the present value of cash outflows. For the first alternative, the PVI is $125,000 / $100,000 = 1.25. For the second alternative, the PVI is $300,000 / $262,500 = 1.14.
The investment with the higher rate of return can be determined by comparing the NPVs or PVIs. In this case, the second alternative has a higher NPV and a higher PVI, indicating that it will provide a higher rate of return.
Company J must choose between two alternate business expenditures. Expenditure 1 would require a $30,000 cash outlay and Expenditure 2 requires a $28,500 cash outlay. Determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal assuming that Expenditure 1 is fully deductible and Expenditure 2 is nondeductible. Determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal assuming that Expenditure 1 is 50% deductible and Expenditure 2 is nondeductible. Determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal assuming that Expenditure 1 is fully deductible and Expenditure 2 is 50 percent deductible.
Hey there!:
case 1 :
Above statement means that Expenditure 1 = 30000 shall be reduced by an amount of tax saving ( since fully deductible) but expenditure - 2 = 28500 is final. ( since no tax saved)
Let............ r = tax rate. To convert any expenditure to after tax by reducing tax saving, we will multiply that expenditure with (1 - r)
So .............. 30000(1- r) = 28500
( 1 - r ) = 28500/30000 = 0.95
1 - r = 0.95 => ............r = 0.05
So Marginal tax rate must be 5%
_________________________________________________
case 2 :
30000 ( 1 - 50%(r) ) = 28500
( 1 - 50%(r) ) = 28500/30000 = 0.95
- 50%(r) = 0.95 - 1 = - 0.05
0.50 * r = 0.05 ( negative cancelled on either sides)
r = 0.05 / 0.5 = 0.10 ..............(or) 10%
Thus marginal tax rate must be 10%
__________________________________________________
Case 3 :
30000 ( 1 - r ) = 28500 ( 1 - 50%( r ) )
Expanding .......... 30000 - 30000*r = 28500 - 28500*50%*r
30000 * r - 14250 * r = 30000 - 28500
15750 * r = 1500
r = 1500/15750 = 0.0952 .(or) 9.52%
So Marginal tax rate must be 9.52%
_________________________________________________________
Hope this helps!
To determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal, we need to compare the after-tax cash flows for each expenditure. We can calculate the cash flows after tax for different scenarios and set them equal to find the marginal tax rate. This can be done for various combinations of deductible and nondeductible expenditures.
Explanation:To determine the marginal tax rate at which the after-tax cash flows from the two expenditures are equal, we first need to calculate the after-tax cash flows for each expenditure.
Case 1: Expenditure 1 is fully deductible and Expenditure 2 is nondeductible:Expenditure 1: $30,000 (fully deductible) -> Cash flow after tax = $30,000
Expenditure 2: $28,500 (nondeductible) -> Cash flow after tax = $28,500 * (1 - marginal tax rate)
To find the marginal tax rate at which the after-tax cash flows are equal, we set the two cash flows equal to each other and solve for the marginal tax rate:
$30,000 = $28,500 * (1 - marginal tax rate)
By solving this equation, we can find the marginal tax rate.
Case 2: Expenditure 1 is 50% deductible and Expenditure 2 is nondeductible:Expenditure 1: $30,000 * 50% (deductible) -> Cash flow after tax = $15,000
Expenditure 2: $28,500 (nondeductible) -> Cash flow after tax = $28,500 * (1 - marginal tax rate)
Again, we set the two cash flows equal to each other and solve for the marginal tax rate to find the point of equality.
Case 3: Expenditure 1 is fully deductible and Expenditure 2 is 50% deductible:Expenditure 1: $30,000 (fully deductible) -> Cash flow after tax = $30,000
Expenditure 2: $28,500 * 50% (deductible) -> Cash flow after tax = $14,250
Again, we set the two cash flows equal to each other and solve for the marginal tax rate to find the point of equality.
Learn more about marginal tax rate here:https://brainly.com/question/34084280
#SPJ2
Pierre left a message on Shayna’s voicemail stating, “Hey Shayna. Regarding that painting we talked about. I changed my mind and I do want to sell it. So I’ll let you have it for a steal at $350. There are lots of people that want it so let me know if you don’t ASAP. I’ll assume you do want it if I don’t hear from you within an hour. Thanks!” This is not a valid contract and Shayna would not be required to purchase painting due to the lack of a(n):
The contract between Pierre and Shayna is not a valid contract due to the lack of acceptance from Shayna.
Further Explanation:
Contract:
A legally enforced agreement is considered a contract. An agreement is a promise between two parties to perform tasks for each other for some consideration. When an agreement becomes legally enforced, then it is considered as a contract. So the contract is a legally enforced promise between two parties for considerations. Both parties should get consideration and have a performance obligation.
Following factors are required for the contract:
Offer: A person should offer some consideration to another person for performing any activity or in the exchange of goods.
Acceptance of offer: The other person should accept the offer made by the first person.
Valuable consideration: There should be valuable consideration for both the parties.
Mutual obligation: Parties should promise to execute their obligated activities.
The performance capacity of the parties: Parties should be capable of performing the contract.
Legally enforcement: The contracts should be legally enforced.
These are the basic elements of a contract. If any contracts lack any of the given factors, then it will not be considered as a valid contract.
The contract between Pierre and Shayna:
In the current case, Pierre makes an offer to sell the painting to Shayna. Pierre leaves a message in the voicemail of Shayna, stating that if Shayna does not contact Pierre within one hour, then Pierre would consider that the Shayna wants to purchase the painting.
It is not a valid contract as it lacks the acceptance of the offer from Shayna.
Pierre enters the contract to sell the painting without considering the acceptance of the offer by Shayna. Pierre puts a condition that if she does not receive any revert from Shayna within one hour, then she would consider that Shayna has accepted the offer. For a valid contract, the promisee should accept the offer but the condition of acceptance (revert within one hour) does not state for the acceptance of Shayna. So, it will not be considered a valid contract.
Thus, the contract between Pierre and Shayna is not a valid contract due to non-acceptence.
Learn more:
1. Learn more about the cash deficiency
https://brainly.com/question/12981857
2. Learn more about the span of control
https://brainly.com/question/12986822
3. Learn more about the sales budget
https://brainly.com/question/12985585
Answer details:
Grade: Senior School
Subject: Business Law
Chapter: Contract Act
Keywords: Pierre, message, Shayna, voicemail, painting, mind, sell, steal, people, ASAP, hear, within an hour, not a valid contract, purchase a painting, lack of a(n), contract act, agreement, law, business law, promise, valid contract.
Consider the markets for mobile and landline telephone service. Suppose that when the average income of residents of Plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile service is 28,000. Suppose that when the price of mobile service rises from $100 to $120 per month, the quantity demanded of landline service increases to 11,000. Suppose also that when the average income decreases to $50,000, the quantity demanded of mobile service decreases to 26,000. What is the income elasticity of demand for mobile service? Show calculation and interpret the result.
Answer: Income elasticity of demand for mobile services = 1.885
Explanation:
Given :
Income 1 = $55000
Income 2 = $60000
Demand 1 = 28000
Demand 2 = 33000
Formula for income elasticity as per mid point method is as follow:
[tex]\left ( \Delta \left ( Quantity demanded/2 \right )\div \Delta \left ( Income/2\right ) \right )\\[/tex]
i.e. [tex]\left ( (33000-28000)/(33000 + 28000)/2 \right )\div\left ( (60000-55000)/(60000+55000)/2\right ) \right )[/tex]
= 1.885
Since income elasticity of demand is positive and greater than 1 therefore mobile service is considered as a superior goods.
The income elasticity of demand of mobile service in this case is -0.7857, indicating it is an inferior but necessary good.
Explanation:The income elasticity of demand for mobile service can be calculated with the formula that divides the percentage change in quantity demanded by the percentage change in income. In this case, the change in quantity demanded is from 28,000 to 26,000, which is a decrease of 2,000. As a percentage, this is a decrease of about 7.14% (2000/28,000). The change in income is from $55,000 to $50,000, a decrease of $5,000. As a percentage, this is a decrease of about 9.09% (5000/55,000). The income elasticity of demand is then 7.14 / -9.09 = -0.7857.
A negative income elasticity of demand indicates that mobile service is an inferior good within this income range meaning as income decreases, the demand for the good increases. However, the negative value is less than 1 which means it's a necessary good, even though it's considered inferior. The quantity demanded decreases with decreased income but not to a very large extent.
Learn more about Income Elasticity of Demand here:https://brainly.com/question/31293339
#SPJ3
Companies that manufacture identical items through a series of uniform production steps use ________ to determine the cost per unit produced. a) a job order costing system b) a process costing system c) both of these systems d) neither of these systems
Companies that manufacture identical items through a series of uniform production steps use to determine the cost per unit produced a process costing system.- b)
Companies that manufacture identical items through a series of uniform production steps use to determine the cost per unitproduced a process costing system.
Estimated manufacturing overhead for the year $ 32,550 Estimated direct labor hours for the year 2,100 Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,230 and 1,050, respectively. The actual manufacturing overhead was $39,000. What is the amount of the under- or overapplied manufacturing overhead? Overhead is applied on the basis of direct labor hours. $2,610 overapplied. $3,660 underapplied. $870 underapplied. $6,450 overapplied.
Answer:
Underapplied for 3,660
Explanation:
MO 32,550
DLH 2,100
rate: MO/DLH = 32,550/2,100 = 15.5 MO per DLH
Applied MO:
job 101 : 1,230 hours x 15.5 = 19,065job 102: 1,050 hours x 15.5 = 16,275Total MO 19,065 + 16,275 = 35,340
Actual Overhead 39,000
Underapplied for 3,660
Many organizations, such as Google, Zappos, Salesforce, and Yahoo!, are designing the work environment to encourage casual conversations among employees who don't generally work together. They also are "installing playful prompts, like trivia games, to get workers talking in traditional conversational dead zones, such as elevators." It is thought that ________ demonstrate a form of social support for employees, leading them to put more effort into creative behaviors.
Answer:
The correct answer would be, Low stress work environments.
Explanation:
Many big organizations like Google, Yahoo, Salesforce, etc are now a days designing the work environments for employees like something that encourages the casual conversations between employees who don't get in touch with each other generally, for example, employees from different departments. They are also installing playful prompts like trivia games to get workers talking with each other on dead zones. Such type of arrangements will make a low stress environment for employees to work in, and due to low stress work environments, employees would work more efficiently and be progressive for the organization. Employees will have a sense of bond and support from other employees. So it is thought that low stress work environments demonstrate a form of social support for employees, leading them to put more effort into creative behaviors.
It is thought that casual conversations and playful prompts to demonstrate a form of social support for employees, leading them to put more effort into creative behaviors.
Explanation:The blank in the sentence can be filled with 'casual conversations and playful prompts'. Many organizations are nurturing an environment that promotes interactions between employees who wouldn't usually work together. This strategy involves playful interventions like trivia games in typical non-conversational areas. These interventions act as a catalyst for dialogue, which is seen as a form of social support. This support is thought to encourage employees to exert more effort into exhibiting creative behaviors within the workforce.
Learn more about Workplace Interactions here:https://brainly.com/question/37637874
#SPJ2
Variable Costing Marsich Company has the following information for February: Sales $490,000 Variable cost of goods sold 220,500 Fixed manufacturing costs 83,300 Variable selling and administrative expenses 53,900 Fixed selling and administrative expenses 34,300 Determine the following for Marsich Company for the month of February: a. Manufacturing margin $ b. Contribution margin $ c. Operating income
Answer:
a. Manufacturing margin = $269,500
b. Contribution margin = $436,100
c. Operating income = $318,500
Explanation:
The formula of Manufacturing margin , Contribution margin & operating income is shown below. Along with it, the computation is also made.
Manufacturing margin = Sales - Variable cost of goods sold
= $490,000 - $220,500
= $269,500
Contribution margin = Sales - Variable selling and administrative expenses
= $490,000 - $53,900
= $436,100
Operating income = Contribution margin - (Fixed manufacturing costs + Fixed selling and administrative expenses )
= 436,100 - $(83,300 + 34,300)
= $318,500
Thus, a. Manufacturing margin = $269,500
b. Contribution margin = $436,100
c. Operating income = $318,500
Which of the following entries would record the application of overhead cost correctly? A. Manufacturing Overhead XXX Accounts Payable XXX B. Work in Process XXX Accounts Payable XXX C. Work in Process XXX Manufacturing Overhead XXX D. Manufacturing Overhead XXX Work in Process XXX
The right entry to record the application of overhead cost is 'C. Work in Process XXX Manufacturing Overhead XXX'. Overhead costs are encompassed in the cost of goods in progress, which is reflected in the 'Work in Process' account. The applied overhead cost lessens the balance in the 'Manufacturing Overhead' account and augments the 'Work in Process' account.
Explanation:The correct entry to record the application of overhead cost in accounting would be: C. Work in Process XXX Manufacturing Overhead XXX. This is because overhead costs are absorbed into the cost of goods that are in production, which is monitored under the Work in Process account. The Manufacturing Overhead is an account where indirect costs associated with manufacturing are accumulated. If we apply an overhead cost, it decreases the balance in the Manufacturing Overhead and increases the amount in Work in Process account, reflecting that overhead costs are being utilized in the production process.
Learn more about Overhead cost application here:https://brainly.com/question/32502155
#SPJ2
The correct entry to record the application of overhead cost is D. Manufacturing Overhead XXX to Work in Process XXX, representing the allocation of indirect costs to goods in production within a manufacturing accounting system.
When overhead costs are allocated to production, the Manufacturing Overhead account (which accumulates indirect manufacturing costs) is debited to reflect the actual costs incurred. These costs are then credited to the Work in Process account, increasing the cost of goods being manufactured. This entry does not involve Accounts Payable because the allocation is an internal process rather than an external transaction.
Which of the following activities are credits? The impact on accounts receivable from a $10 million collection from a customer. The impact on treasury stock from a company repurchasing $32 million in shares. The impact on inventory from a company recognizing $15 million in cost of goods sold expense. The impact on debt from a $15 million principal paydown.
Final answer:
Credits are recorded for the collection from a customer (decreasing Accounts Receivable) and the principal paydown on debt (decreasing liability). Both activities decrease respective accounts, which are naturally debit accounts, so a credit is used to record the decrease.
Explanation:
Among the given activities, the following represent credits: collection from a customer impacting accounts receivable and principal paydown impacting debt. Additionally, the repurchase of shares affects treasury stock but represents a debit rather than a credit. Recognizing cost of goods sold expense affects inventory and also results in a debit instead of a credit.
Explanation:
Collection from a Customer: When a company collects $10 million from a customer, this decreases Accounts Receivable (an asset) and increases Cash (another asset). The decrease in Accounts Receivable is credited because it reduces the asset account.
Principal Paydown: On payment of a $15 million loan principal, the liability account (Debt) decreases. Since liabilities have a credit balance, to reduce them, we debit the account and credit the Cash account to represent the outflow of cash.
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000. The annual explicit costs of the materials used to make the cookie jars are $54,000. Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer. What is the annual economic profit of her cookie jar business?
Answer: $29,950
Explanation: As we know that,
Economic profit = Total revenues - (explicit cost + implicit cost)
where,
Explicit costs are payments made to others for running operations of business.
Implicit cost or opportunity cost can be defined as the cost of loosing profits for choosing one alternative instead of other.
In the given case the interest of $50 on savings and $6000 salary is the implicit cost.
Economic profit = $90,000 - ($54,000 + $50 + $6,000)
= $29,950
Christine's economic profit, which accounts for both explicit and implicit costs, is $24,950 per year.
Explanation:Calculating the annual economic profit for Christine’s cookie jar business
To calculate Christine's economic profit, we need to consider both explicit and implicit costs. Explicit costs are the actual out-of-pocket costs, such as the cost of materials for the jars ($54,000), and the cost of pottery tools she bought for her business ($5,000). So the total explicit cost is $54,000 + $5,000 = $59,000.
Implicit costs are the opportunity costs that are foregone by not using the resources in their next best alternative. In this scenario, Christine's implicit costs include the foregone interest on her savings ($5,000 x 0.01 = $50) and the income she could have earned as a tax preparer ($6,000). So, the total implicit cost is $50 + $6,000 = $6,050.
The Economic profit is calculated by subtracting both explicit and implicit costs from the total revenue. Therefore, Christine's economic profit is $90,000 (revenue) - $59,000 (explicit cost) - $6,050 (implicit cost) = $24,950.
Learn more about Economic Profit here:https://brainly.com/question/33205053
#SPJ3
Mart's Boutique has sales of $820,000 and costs of $540,000. Interest expense is $36,000 and depreciation is $59,000. The tax rate is 21 percent. What is the net income? $146,150 221,200 105,000 139,050
Answer:
$146,150.00
Explanation:
Net income is net of taxes.
Here,
Sales = $820,000.00
Less: Costs = -$540,000.00
Gross profit = $280,000.00
Less: Finance Costs
Interest = -$36,000.00
Depreciation = -$59,000.00
Net profit before Tax = $185,000.00
Less: Tax @ 21% of $185,000.00 = - $38,850.00
Net Income (after tax) = $146,150
Net income is always computed after tax.
$146,150.00
Final answer:
To find Mart's Boutique net income, subtract the costs and depreciation from sales, then subtract interest expense and taxes. The boutique's net income is $146,150.
Explanation:
To calculate the net income for Mart's Boutique, we begin with sales and subtract the costs:
Sales: $820,000Costs: $540,000Depreciation: $59,000Interest Expense: $36,000The operating profit is calculated as Sales minus Costs and Depreciation. Then we subtract the Interest Expense to get the pre-tax income:
Operating Profit = Sales - Costs - DepreciationOperating Profit = $820,000 - $540,000 - $59,000Operating Profit = $221,000Pre-tax Income = Operating Profit - Interest ExpensePre-tax Income = $221,000 - $36,000Pre-tax Income = $185,000Finally, we calculate the net income by subtracting the tax, which is 21% of the pre-tax income:
Tax = Pre-tax Income × Tax RateTax = $185,000 × 0.21Tax = $38,850Net Income = Pre-tax Income - TaxNet Income = $185,000 - $38,850Net Income = $146,150Mart's Boutique has a net income of $146,150.Scott's Lawn Care has hired Henry Associates to find out whether home improvement warehouse stores communicate the benefits of various brands of lawn care products differently than smaller stores. Henry Associates needs to know what is communicated to consumers in the actual settings of the stores and wants to ensure that the message isn't filtered. Only behavioral data is required. Which type of data collection method is most appropriate in this situation? A. CommunicationB. ObservationC. SurveysD. ExperimentalE. Causal
Answer:
The correct answer is option B. observation.
Explanation:
Observation is a method of data collection which involves the use of all the senses to study people in their natural setting. The process involve gathering knowledge about a phenomena by making observations. The aim here is to focus on human behavior, human interaction with phenomenon and the use of phenomenon..
In the above example, actual setting and behavioral data is required. So, the most appropriate method for data collection here will be observation.
The outstanding bonds of The Purple Fiddle are priced at $898 and mature in nine years. These bonds have a 6 percent coupon and pay interest annually. The firm's tax rate is 35 percent. What is the firm's after tax cost of debt?
Answer : 4.34 %
Explanation: The effective interest rate a company pays on its debt obligation is called cost of debt. The cost of debt is denoted by [k]x_{d}[/tex] . As there is a tax shield available on debt interest it is generally calculated by subtracting the marginal tax rate from before tax cost of debt .
.
[tex]k_{d}=\frac{c}{p}\times\left ( 1-t \right ) [/tex]
where,
c= coupon payment = 1000 * 6% = 60
p = current market price = $898
t= marginal tax rate
therefore :-
= [tex]\frac{60}{898}\times \left ( 1-0.35 \right )[/tex]
= 4.34 %
This problem has been solved!
See the answer
Peroni Company paid wages of $170,900 this year. Of this amount, $114,000 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.
a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions
$
b. Amount that Peroni Company would pay to the federal government for its FUTA tax
$
c. Amount that the company lost because of its late payments
$
a. (Taxable wages x SUTA rate x 90%) + [Taxable wages x (5.4% -SUTA rate)] = Total FUTA tax credit
b. (Taxable wages x FUTA rate) – Total FUTA tax credit (part a above) = Net FUTA tax
c. Net FUTA tax – FUTA tax without penalty = penalty
hey there!:
1)
a) Amount of credit the company would receive against the FUTA tax for its SUTA contributions = 2896.21
(56900*3.1%*90%)+(56900*(5.4%-3.1%)) = 2896.21
b) Amount that Peroni Company would pay to the federal government for its FUTA tax = 517.79
(56900*6%)-2896.21 = 517.79
c) Amount that the company lost because of its late payments = 176.39
=517.79-(3414-1763.9-1308.7) = 176.39
Hope that helps!
To find the total FUTA tax, calculate the credit received for SUTA contributions first, then use that to calculate the net FUTA tax. Then, the penalty can be calculated as the difference between the net FUTA tax and the FUTA tax without penalty.
Explanation:To calculate a), the amount of credit the company would receive against the FUTA tax for its SUTA contributions, we use the formula: (Taxable wages x SUTA rate x 90%) + [Taxable wages x (5.4% -SUTA rate)]. Plugging in the provided numbers gives: ($114,000 x 3.1% x 90%) + [$114,000 x (5.4% - 3.1%)]. For b), the amount that Peroni Company would pay to the federal government for its FUTA tax, we use the formula: (Taxable wages x FUTA rate) - Total FUTA tax credit. Calculate the FUTA rate (generally it is 6.0%), then substitute the FUTA tax credit obtained in a). For c), the amount the company lost due to its late payments, we use the formula: Net FUTA tax – FUTA tax without penalty, which gives the penalty.
Learn more about FUTA and SUTA Tax Calculation here:https://brainly.com/question/33720518
#SPJ3
Daniel Corporation had net income for 2018 of $ 74 comma 000. Daniel had 12 comma 000 shares of common stock outstanding at the beginning of the year and 17 comma 000 shares of common stock outstanding at the end of the year. There were 12 comma 000 shares of preferred stock outstanding all year. During 2018, Daniel declared and paid preferred dividends of $ 25 comma 000. On December 31, 2018, the market price of Daniel's common stock is $ 46.00 per share and the market price of its preferred stock is $ 68.00 per share. What is Daniel's price/earnings ratio at December 31, 2018? (Round any intermediate calculations and your fin
Final answer:
Daniel Corporation's price/earnings ratio at the end of 2018 is calculated by dividing the market price of its common stock ($46.00) by its earnings per share ($3.38), which after subtracting preferred dividends and adjusting for the weighted average number of shares, results in a ratio of approximately 13.61.
Explanation:
To calculate Daniel Corporation's price/earnings ratio at the end of 2018, we begin with its net income for the year, which is $74,000. Preferred dividends are then subtracted from this amount since they are not available to common shareholders. Daniel Corporation paid $25,000 in preferred dividends, leaving $74,000 - $25,000 = $49,000 for the common shareholders.
We then use the weighted average number of common shares outstanding to determine the earnings per share (EPS). Since the company had 12,000 shares at the beginning of the year and 17,000 at the end, we calculate the weighted average as follows: (12,000 shares for 1/2 year) + (17,000 shares for 1/2 year) = 6,000 + 8,500 = 14,500 weighted average shares.
Next, we divide the adjusted net income by the weighted average shares to get the EPS: $49,000 / 14,500 shares = approximately $3.38 EPS. The market price of common stock is given as $46.00 per share. Therefore, the price/earnings ratio is $46.00 / $3.38 = approximately 13.61.
Final answer:
Daniel Corporation's price/earnings ratio at December 31, 2018, can be found by dividing the market price per share ($46.00) by the earnings per share ($3.38), resulting in a P/E ratio of approximately 13.61.
Explanation:
The price/earnings ratio, or P/E ratio, is calculated by dividing the market price per share by the earnings per share (EPS). In Daniel Corporation’s case, the EPS is the net income minus preferred dividends, divided by the weighted average of outstanding shares during the year. To compute the weighted average, you would consider that 12,000 shares were outstanding for the whole year and an additional 5,000 shares ((17,000 - 12,000) for a part of the year).
To calculate the P/E ratio, first, we find the EPS for common stockholders. This is calculated by subtracting the $25,000 in preferred dividends from the $74,000 net income to get $49,000. Next, we need to determine the weighted average shares. If we assume that the additional 5,000 shares were outstanding for half the year, the calculation would be (12,000 shares × 12 months + 5,000 shares × 6 months) / 12 months, which equals 14,500 shares. Therefore, the EPS is $49,000 / 14,500 shares = $3.38 per share.
Finally, the P/E ratio is the closing market price divided by the EPS: $46.00 per share / $3.38 per share = approximately 13.61. Therefore, Daniel’s price/earnings ratio at December 31, 2018, would be 13.61, assuming a rounding to two decimal places.
If a project's discounted payback period is less than its useful life, _____.
a. the terminal value of its future cash inflows is less than the future value of its initial cost
b. the present value of its future cash inflows is greater that the future value of its initial cost
c. the present value of its future cash flows exceeds its initial cost
d. its future cash inflows are less than its initial cost
e. its cost-recovery time should exceed the maximum cost-recovery time established by the firm
Answer:
e. Its cost-recovery time should exceed the maximum cost-recovery time established by the firm
Explanation:
If a project's discounted payback period is less than its useful life, its cost-recovery time should exceed the maximum cost-recovery time established by the firm.
Dim Corporation purchased 1,000 bonds of Witt Corporation in 2015 for $790 per bond and classified the investment as securities available for sale. The value of these holdings was $272 per bond on December 31, 2016, and $404 on December 31, 2017. During 2018, Dim sold all of its Witt bonds at $490 per share. In its 2018 income statement, Dim would report:
Answer:
In the income statemnt for 2018
Gain on Sale of Bonds 86,000
Explanation:
This securities available for sale will be measurement at fair value, through profit and loss
2018 Beginning Valuation
1,000 bonds x 404 = 404,000
Value at sale
1,0000 x 490 = 490,000
Gain on Sale of Bonds 86,000
A basket of goods for a given consumer includes two goods, X and Z. Consumer income is equal to $1,500 and the prices of these two goods are as follows: Px = $50 Pz = $50 This consumer is consuming 10 units of good X. Suppose that over the course of a year, the price of good X changes by -20% and the price of good Z changes by 25%.
How much income would be required for the consumer to afford the same quantity of goods X and Z with the new prices?
What is the rate of inflation?
Given this change in prices, is it possible for our consumer to buy the original bundle of goods?
Answer:
Costumer will need $1650 to afford the same quantity of goods
Rate of inflation=2.5%
Is not possible for our consumer to buy the original bundle of goods
Explanation:
Income = $1,500
First year Px = $50
Pz = $50
10 units of good X is 50x10=500,
Consumer could buy $1000 in product Z (Income-cost of product Z=1500-500)
qz=Product Z is $50 each so customer could buy 20 units(1000/50).
Prices of Second year
Px' = $50*(1-0.20)=40
Pz' = $50*(1+0.25)=62.5
Cost=Px'*qx+Pz'*qz=40*10+62.5*20=400+1250=1650
Costumer will need $1650 to afford the same quantity of goods
Rate of inflation=
RI=(sum price of x and z in second year-sum price of x and z in first year)/100
RI=(40+62.5)-(50+50)/100=102.5-100/100= 2.5/100=0.025=
RI=2.5%
Is not possible for our consumer to buy the original bundle of goods with the same budget
Final answer:
After the price changes, the consumer requires $1,025 to purchase the same quantity of goods X and Z, which is less than the original income of $1,500. Therefore, it is possible for the consumer to afford the original bundle of goods.
Explanation:
The question involves a consumer whose income and the prices of two goods, X and Z, change over a given period. Initially, both goods are priced at $50 each, and the consumer can buy 10 units of good X with a total income of $1,500. Over the course of a year, the price of good X drops by 20%, making its new price $40 ($50 - 20% of $50), and the price of good Z increases by 25%, making its new price $62.50 ($50 + 25% of $50). To calculate the income required for the consumer to afford the same quantity of goods X and Z with the new prices, we multiply the new prices by 10 units (since the original quantity purchased is 10 units for X and assuming the same for Z for simplicity): 10 units * $40 for X = $400 and 10 units * $62.50 for Z = $625, totalling $1,025. Therefore, the consumer now requires an income of $1,025 to afford the same quantity of goods at the new prices. The rate of inflation is a measure of the overall increase in prices over a given period. While this example does not provide sufficient data to calculate a broad rate of inflation, the significant price change in goods X and Z demonstrates individual price inflation and deflation respectively. Given the new prices, it is indeed possible for our consumer to buy the original bundle of goods due to the decreased price of X, despite the increased price of Z, especially since the total new required income ($1,025) is less than the original income ($1,500).
national Mining Corp. purchased a mine, which holds an estimated 031,000 tons of iron ore, on January 1, 2018, for $ 526,000. The mine is expected to have zero residual value. The business extracted and sold 12,500 tons of ore in 2018 and 11,800 tons of ore in 2019. What is the depletion expense for 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
The depletion expense for National Mining Corp. for the year 2018, given the mine purchase cost and the amount of iron extracted and sold in that time, is calculated to be approximately $212,125.
Explanation:To find out the depletion expense for 2018, we first need to determine the depletion rate. The depletion rate is the cost of the mine divided by the estimated total extractable amount of iron ore. In this case, it will be $526,000 divided by 31,000 tons, which equals $16.97 per ton (rounded to two decimal places).
Then, we multiply the depletion rate by the amount of iron ore that was extracted and sold in 2018. So, the depletion expense would be $16.97 per ton times 12,500 tons, equaling $212,125 (rounding to the nearest dollar).
Learn more about Depletion Expense here:https://brainly.com/question/36655153
#SPJ12
At a volume of 11,000 units, Pwerson Company incurred $33,000 in factory overhead costs, including $11,000 in fixed costs. If volume increases to 13,000 units and both 11,000 units and 13,000 units are within the relevant range, then the company would expect to incur total factory overhead costs of:
Answer:
$37,000.00
Explanation:
Total fixed overhead costs = $11,000.00
Variable overhead cost at 11,000 units of production
=Total overheads - Fixed overheads
=$33,000 -$11,000 = $22,000
Variable cost per unit = [tex]\frac{22000}{11000}[/tex] = $2 per unit
When production increased to 13,000 units then overheads costs will be
Fixed Costs = $11,000 Remains constant up to certain activity level, here 13,000 units is acceptable level
Variable costs = 13,000 units X $2 per unit = $26,000
Total Overhead costs = Fixed + Variable
= $11,000 + $26,000 = $37,000
Total = $37,000
On March 1, 2015, Landon Company acquired real estate on which it planned to construct a small office building. The company paid $90,000 in cash. An old warehouse on the property was razed at a cost of $7,600; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $4,000 real estate broker's fee, $7,800 architect's fee, and $14,000 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.
Answer:
The amount to be reported as the cost of the land is $101,000
Explanation:
Given information
Paid cash - $90,000
Cost of property $7,600
Salvaged materials - $1,700
Attorney's fee for work concerning the land purchase - $1,100
Real estate broker's fee - $4,000
Architect's fee - $7,800
Put in driveways and a parking lot - $14,000
For computing the amount of the cost of the land, the Architect's fee and Put in driveways and a parking lot is not considered as it is not related to the land expenses. The computation is shown below
= Cash amount + Cost of property - Salvaged materials + Attorney's fee + Real estate broker's fee
= $90,000 + $7,600 - $1,700 + $1,100 + $4,000
= $101,000
Thus, the amount to be reported as the cost of the land is $101,000
The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 $80,000 (debit) Net credit sales for 2018 160,000 Accounts written off as uncollectible during 2018 16,000 Cash sales during 2018 42,000 The company uses the direct writeminusoff method for bad debts. What is the amount of bad debts expense?
Answer:
The amount of bad debts expense is $16,000
Explanation:
Bad debt : The Bad debt is that amount in which the chances of payment receive is very less. Thus, the bad debt amount is deducted in the balance sheet under debtors account and also it is shown in Profit and loss Account in debit side.
Under direct write minus off method for bad debts, the bad debt amount is recognized irrespective of whatever information is given.
Since in the question, the non-collectible amount is given which is $16,000.
So, the amount of bad debts expense is $16,000
Green Woods sells specialty equipment for mountain climbers. Its sales for last year included $238,000 of tents and $411,000 of climbing gear. For next year, management has decided to sell specialty sleeping bags also. As a result of this change, sales projections for next year are $264,000 of tents, $426,000 of climbing gear, and $51,000 of sleeping bags. How much of next year's sales are derived from the side effects of adding the new product to its sales offerings?
Answer:
By $41,000 the next year's sales are derived from the side effects of adding the new product to its sales offerings.
Explanation:
For calculating the sale for next year, the tent expense and climbing gear is to be considered. With the help of these, the next year sale from the side effects can be derived. The sleeping bag cost is not to be considered so it would not be taken for calculation. The computation is shown below:
= (Tent Expense Next year + Climbing gear Next year ) - (Tent Expense Previous year + Climbing gear Previous year )
= ( $264,000 + $426,000) - ( $238,000 + $411,000)
= ($690,000 - $649,000)
= $41,000
Thus, by $41,000 the next year's sales are derived from the side effects of adding the new product to its sales offerings.
Raymond Financing leases airplanes to airline companies. Raymond has just signed a 20-year lease agreement that requires annual year-end lease payments of $900,000. What is the present value of the lease using a 10% interest rate?
Answer:
7662207.35
Explanation:
We are asked to find the present value of a 20 years annuity at rate equal 10%
[tex]present \: value = annuity \times \frac{1 - {(1 + rate)}^{ - time} }{rate} [/tex]
[tex]900000 \times \frac{1 - {1.1}^{ - 20} }{.1} = 7662207.35[/tex]
Remember:
on present time: power is negative and the 1 comes first
[tex]1 - {(1 + rate)}^{ - time} [/tex]
on future value: the power is positive and comes first then you subtract 1
[tex] {(1 + rate)}^{time} - 1[/tex]
Which of the following statements are true regarding profit-maximizing firms?A.They will attempt to maximize the difference between total revenues and total costs.B.They will use more of a resource as long as the marginal resource cost (MRC) is greater than the marginal revenue product (MRP).C.They will only produce where MRP is positive and MRC is negative.D.none of the above.
Answer:
For a profit maximizing firm , the statement that will be true is A) they will attempt to maximize the difference between total revenues and total costs.
Explanation:
The basic formula that is used to calculate profit is -
Profit = Total revenue - Total cost
Profit maximization is a concept according to which a firm who is looking for maximizing its profits, should choose that optima level of output where its marginal cost ( cost that is incurred because of producing one additional unit of good ) and marginal revenue ( change in revenue because of change in sales ) are same.
When the marginal revenue is greater than the marginal cost , it means that the revenues generated by producing additional quantity of goods is greater than the cost incurred on producing them, so hence we can say that for maximizing profit , a firm would want that the gap between revenue and cost is higher.
The statement of cash flows explains changes in a firm’s: A) Cash on hand and cash in the bank B) Cash and cash equivalents C) Cash, cash equivalents, and accounts receivable D) Working capital
Answer:
C Cash and cash equivalents
Explanation:
For Cash equivalent, you must understand that is less than 90 days short term-investment which must be readily for convertible to a known amount of cash and practically no risk, again, within 90 days
Source: IFRS IAS 7 Statement of Cash Flows—identification of cash equivalents
The statement of cash flows details changes in a firm's Cash and cash equivalents (B). It lists cash inflows and outflows related to the company's operations and investment activities, but does not directly report on accounts receivable or working capital.
Explanation:The statement of cash flows explains changes in a firm’s B) Cash and cash equivalents. The statement of cash flows is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period. Changes in accounts receivable are reflected on the balance sheet and can influence the cash flow statement indirectly, but they are not included in the definition of cash and cash equivalents. The statement does not provide information directly on the firm's working capital, which includes current assets and current liabilities, other than cash and cash equivalents.
Learn more about Statement of Cash Flows here:https://brainly.com/question/32731828
#SPJ6
Which of the following is correct? a. U.S. exports as a percentage of GDP have about tripled since 1950. The U.S. currently has a trade deficit. b. U.S. exports as a percentage of GDP have about doubled since 1950. The U.S. currently has a trade deficit. c. U.S. exports as a percentage of GDP have about doubled since 1950. The U.S. currently has a trade surplus. d. U.S. exports as a percentage of GDP have about tripled since 1950. The U.S. currently has a trade surplus.
Answer: Option (b) is correct.
Explanation:
U.S. exports as a percentage of GDP have about doubled since 1950. The U.S. currently has a trade deficit.
The moving of a portion of the manufacturing facilities from US to other minimal effort Asian nations, because of which US has begun import from those nations rather producing at home.
The US individuals don't spare much, yet the economy needs capital for venture purposes because of which US has been net shipper of capital streams. This net import of capital streams makes it to pay for the imports of items and administrations from different nations.