Answer:
It will deposit $ 10,082.68 per yearto fund their children tuiton
Explanation:
We calculate the present value of the tuiton:
We must notice payment are made atthe beginning of the year. So this will be an annuity-due
[tex]C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\[/tex]
C 40,000 per year
time 4 year
rate 7% = 7/100 = 0.07
[tex]40000 \times \frac{1-(1+0.07)^{-4} }{0.07} (1+0.07) = PV\\[/tex]
PV $144,972.6418
we round to 144,972.64
Then, we have two children and we stop the payment when the oldest children goes into college.
so one tuiton must be carryied two years into the future:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $144,972.64
time 2 years
rate 0.07000
[tex]144972.64 \: (1+ 0.07)^{2} = Amount[/tex]
Amount 165,979.18
We add both to get the total value of our fund:
144,972.64 + 165,979.18 = 310,951.82 = 310,952
Finally we calculate the couta of this annuity for 17 years
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $310,952.00
time 17 years
rate 7% = 0.07
[tex]310952 \times \frac{1-(1+0.07)^{-17} }{0.07} = C\\[/tex]
C $ 10,082.68
Based o the fact that there are two children involved and the annual savings have to be uniform, the annual amount to fund your children's education will be $10,808.
How much should you deposit yearly?The amount needed for both children is:
= 2 students x ( College expenses x Present value factor for Annuity due, 7%, 4 years)
= 2 x (40,000 x 3.6243)
= $271,597
This is the total amount to be saved so the amount to be saved yearly is:
271,597 = Amount x ( ( 1 + 7%)¹⁵ - 1) / 7%
Amount = 271,597 / 25.1290
= $10,808
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Which activity is not the responsibility of IT service continuity management?
A. Drawing up back-out scenarios
B. Analyzing risks
C. Testing back-out arrangements
D. Executing impact analyses of incidents related to the back-out facilities
Answer:
D. Executing impact analyses of incidents related to the back-out facilities
Explanation:
According to the ITIL manual, the activities for IT service continuity management are:
Identify services and assets,Identify risks and threats,Make contingency plans,Document the recovery plan
3. List and explain at least 3 strategies for successfully increasing diversity in the workforce.
Answer: To include diversity within the work environment, the following actions can be developed:
1- Establish a policy at the level of human resources to hire a specific number of women, mens, nationals and foreigners.
2- Dedicate one or several days a year to show the different cultures that remain in the company.
3- Place signs in the work area such as walls, wallpapers on the work site inherent in diversity.
Set up the 2015 balance sheet for Circle Corp. based on the following information: cash = $141,000; patents and copyrights = $630,000; accounts payable = $219,000; accounts receivable = $132,500; tangible net fixed assets = $1,655,000; inventory = $300,000; notes payable = $110,000; accumulated retained earnings = $1,250,000; long-term debt = $859,000. (Be sure to list the accounts in order of their liquidity. Do not round intermediate calculations.)
Answer:
Explanation:
Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced.
Moreover, it always is prepared on the specified date.
The common stock amount is not given in the question, so it is a balancing figure. It is computed by
= Total assets - total current liabilities - total long term liabilities - accumulated retained earning
= $2,858,500 - $329,000 - $859,000 - $1,250,000
= $420,500
The preparation of the balance sheet is presented in the spreadsheet. Kindly find the attachment below:
Which of the following is true about the U.S. labor force participation rate since 1950?
a. Since about 1990, females have participated at the same rates as males.
b. Female participation rates have risen steadily throughout the entire period.
c. Male participation rates have been falling throughout the period
d. Prior to the Great Recession, overall participation had been constant throughout the period
Answer:
b. Female participation rates have risen steadily throughout the entire period.
Explanation:
The involvement of women in the labor rate is oen of the main factor for the US economy grow for the period as their participation double between now and 1950.
At that point in history, women participation rate was of a third while now two third of the women work.
The rate at which women enter the job market risen throguth the entire period of the seconf half of the twentieth century
The most accurate statement regarding the U.S. labor force participation rate since 1950 is that male participation rates have been falling throughout the period. The female participation rate increased significantly from 1950s to about 2000, but has slightly decreased since then. Females have not yet participated at the same levels as males.
Explanation:The subject of your question is the labor force participation rate in the U.S. since 1950. The most accurate statement among the options provided is that the male participation rates have been falling throughout the period (Option c). This is because, historically, the labor force participation rate was largely driven by the male population. However, in the latter half of the 20th century, social and economic changes led to a decline in the male labor force participation rate, while the female rate rose.
As for the other options: it is not completely true that female participation rates have risen steadily throughout the entire period (Option b), nor that overall participation had been constant prior to the Great Recession (Option d). While it is true that the female labor force participation rate increased significantly from the 1950s to about 2000, it has slightly decreased since then. Lastly, it's important to note that females have not yet participated at the same rate as males (Option a), although the gap certainly lessened in the second half of the 20th century.
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In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June? Question 1 options: 80,000 units 70,000 units 90,000 units 100,000 units
Answer: Option (c) is correct.
Explanation:
Given that,
Beginning work in process = 20,000 units and 70% completed
So, Units transferred = 20,000 × 30%
= 6,000
Direct transferred = 80,000 units
Ending work in process = 10,000 × 40%
= 4,000
Therefore,
Units were transferred out of the process in June:
= Beginning WIP transferred + Direct transferred + Ending work in process
= 6,000 + 80,000 + 4,000
= 90,000 units
Final answer:
To find the number of units transferred out of the process in June, we add the beginning units to the units transferred in and subtract the units still in process at the end of June, resulting in 90,000 units transferred out.
Explanation:
The question asks how many units were transferred out of the process in June. To find this, we start with the total units at the beginning and added during June, subtract the units still in process at the end of June, and adjust for the percentage completion where necessary. The calculation is straightforward:
Beginning units (already 70% complete): 20,000 unitsUnits transferred in during June: 80,000 unitsUnits in process at end of June (40% complete): 10,000 units
The units transferred out equals the beginning units plus units transferred in minus ending units in process, without needing to adjust for completion percentages because materials are added at the beginning, and the question implicitly focuses on the units themselves, not the degree of completion for costs. Therefore, the units transferred out are simply:
20,000 + 80,000 - 10,000 = 90,000 units.
So, 90,000 units were transferred out of the process in June.
To retain its edge in the organic health food market, Natura has established a high-priority team comprised of senior executives from the company's production, marketing, and research divisions. These employees work together closely to study consumer attitudes about organic health foods and come up with a closely monitored development and marketing strategy for new products. This ensures that each division is informed of the specific needs, timelines, and expected outcomes of the strategy. It also makes Natura a company that adapts to changes in market trends swiftly. The team Natura uses here is of the ________ type.A) problem-solvingB) self-managed workC) cross-functionalD) traditionalE) departmental
Answer:
Cross-functional
Explanation:
It is a team composed of people with different skills necessary to complete the work.
A cross-functional device is one that:
As a whole it is self-sufficient.
He has the knowledge and skills necessary to build the part of the product that corresponds to him.
Each member's specialty can be complemented by some other team member.
In a multifunctional development team, speed and productivity are triggered because, not depending so much on other people to do the job, request information, resources or requests from different managers, much time is saved in the process.
The stage of the capital budgeting process that distinguishes which types of capital expenditure projects are necessary to accomplish organization objectives is the:
a. identification stage
b. search stage
c. information-acquisition stage
d. selection stage
Answer: The stage of the capital budgeting process that distinguishes which types of capital expenditure projects are necessary to accomplish organization objectives is the identification stage.
Explanation: It is the cover in which different types of capital expenditure projects are distinguished and which are necessary to achieve the objectives of the organization.
Which of the following statements is true of global agnostics?
a. They are in favor of buying global brands that signal prestige and cachet.
b. They are skeptical about whether global brands deliver higher-quality goods.
c. They are most likely to lead anti-globalization demonstrations.
d. They may not be able to afford, but nevertheless admire, global brands.
Answer:
C. They are most likely to lead anti-globalization demonstrations.
Explanation:
A. Are global citizens. Favours international brands.
B. This refers to Antiglobals. Doesn't like international brands because of their skepticism towards their quality.
C. Refers to Global Agnostics. Prefers national and local brands.
D. Are global dreamers. Favours international brands.
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 315,000 Beginning merchandise inventory $ 21,000 Purchases $ 210,000 Ending merchandise inventory $ 10,500 Fixed selling expense $ ? Fixed administrative expense $ 12,600 Variable selling expense $ 15,750 Variable administrative expense $ ? Contribution margin $ 63,000 Net operating income $ 18,900 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Q=1000
Sales= $ 315,000
Beginning merchandise inventory= $21,000
Purchases= $210,000
Ending merchandise inventory= $10,500
Fixed selling expense= $ ?
Fixed administrative expense= $12,600
Variable selling expense= $15,750
Variable administrative expense= $ ?
Contribution margin= $63,000
Net operating income= $18,900
First, we have to calculate the variable administrative expense:
Contribution margin= sales - cost of goods sold - variable selling expense - variable administrative expense
63000= 315000 - (beginning inventory + purchase - ending inventory) - 15750 - variable administrative expense
variable administrative expense= 315000 - (21000+210000-10500)-15750-63000
variable administrative expense= $15750
Now, we can calculate the fixed selling expense:
Net operating income= contribution margin - fixed selling expense - fixed administrative expense
18900= 63000 - fixed selling expense - 12600
fixed selling expense= 63000-12600-18900
fixed selling expense= 31500
A)Sales= 315,000
Variable costs:
Cost of good sold= 220,500
Variable selling expense= 15,750
Variable administrative expense= 15,750
Total variable cost= 252,000
Contribution margin=$63000
Fixed costs:
Fixed selling expense= 31,500
Fixed administrative expense= 12,600
Total fixed cost= $44,100
Net profit= $18,900
B) Revenue= 315,000
COGS= 220,500 (-)
Gross porfit= 94500
Selling expense= (15750+31500)= 47,250
Administrative expense= (15750+12600)= 28,350
EBITDA= 18,900
C) Selling price per unit= 315,000/1000= $315
D) Variable cost per unit= total variable cost/q= 252000/1000= $252
E) Contribution margin per unit= 63000/1000= $63
F) The contribution format income statement, because you can easily analyze the effect of each unit in the cost structure and net income.
To address the student's request, prepare both a contribution format and traditional format income statement using the provided figures, calculate the selling price, variable cost, and contribution margin per unit. The contribution format is more useful for managerial decision-making as it differentiates between fixed and variable costs.
Explanation:The student's question requires generating several components of income statements, calculating pricing and costs per unit, and understanding which income statement format is more useful for managerial decision-making.
Contribution Format Income Statement
To prepare a contribution format income statement, we will segregate fixed and variable costs and calculate the missing variable administrative expense using the given contribution margin:
Traditional Format Income Statement:
For the traditional format income statement, costs will be categorized into COGS (beginning inventory + purchases - ending inventory) and operating expenses, and profit will be calculated accordingly.
Selling Price and Variable Cost Per Unit:
Selling price per unit would be Sales divided by the number of units sold. The variable cost per unit can be determined by calculating the total variable costs and dividing by the number of units.
Contribution Margin Per Unit:
The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit.
The contribution format income statement is generally more useful for managers when estimating changes in net operating income due to changes in unit sales because it clearly distinguishes between fixed and variable costs.
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Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit $ 29 Variable expense per unit $ 14 Fixed expense per month $ 12,450 Unit sales per month 980 Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
Answer:
a) $4,350 b) 15.31%
Explanation:
a) Units sold per month = 980
Unit selling price = $29
Variable cost per unit = $14
Monthly fixed cost= $12,450
The formula for Margin of safety
= Actual sales –Break-even sales
Total monthly sales = 980 * $29 = $28,420
Break-Even sales (units) = FC / (SP- VC) FC = Fixed cost
= $12,450/ (29-14) SP - Selling price
= $12,450 / 15 VC = Variable cost
= 830 units
Break-even sales in $ = 830 * $29 = $24,070
Margin of safety = Actual sales –Break-even sales
= $ 28,420 - $24,070
= $ 4,350
b) Margin of safety as a % of sales
= ($ 4,350 / $ 28,420) * 100
= 15.31%
To determine the margin of safety for Molander Corporation, subtract break-even sales from total sales and then calculate the margin of safety as a percentage. For Doggies Paradise Inc. and AAA Aquarium Co., calculate the revenue, cost metrics, and sketch appropriate curves to find the profit maximizing quantities.
Explanation:The Molander Corporation is looking to understand its margin of safety and the margin of safety as a percentage of its sales. The margin of safety is the difference between actual or budgeted sales and the sales level at the break-even point. It represents the amount by which sales can drop before reaching the break-even point. To calculate this:
Total Sales = Unit Sales per Month x Selling Price per Unit = 980 x $29Break-Even Sales = Fixed Expense per Month / (1 - (Variable Expense per Unit / Selling Price per Unit))Subtract the Break-Even Sales from the Total Sales to find the margin of safety. To calculate the margin of safety as a percentage of sales, divide the margin of safety by the Total Sales and multiply by 100.
For Doggies Paradise Inc., to find the profit maximizing quantity, we calculate total revenue, marginal revenue, total cost, and marginal cost for all levels of output, then sketch the related curves.
For AAA Aquarium Co., we perform similar calculations to determine the profit-maximizing quantity and sketch revenue and cost curves.
Rent for the month of January has expired. Supplies remaining at the end of January total $4,100. By the end of January, $4,175 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $4,890. 2. Record the adjusting entries on January 31 for the above transactions
The student’s question is related to the recording of adjusting entries for supplies, prepaid services, and unpaid salaries. The adjusting entries would record expenses or recognize revenue if services were provided and increase liabilities for unpaid salaries.
The question involves the recording of adjusting entries at the end of the month for a business's accounting records. The adjustments pertain to expired rent, remaining supplies, advanced payment for services, and unpaid salaries.
Adjusting Entries on January 31
Expired Rent: Rent expense should be recorded in the period which it relates, but since the question doesn't mention the rent amount, we can't record it.
Supplies: If the beginning balance was higher than $4,100, record the difference as a Supplies Expense and decrease Supplies. Without the beginning balance, we only note the current Supplies balance.
Advanced Payment for Services: $4,175 received in advance is recognized as unearned revenue at the time of payment. Upon providing the services, this unearned revenue is adjusted to earned revenue. The entry would be a debit to Unearned Revenue and a credit to Service Revenue for $4,175.
Unpaid Salaries: Salaries payable will increase by $4,890. The entry is a debit to Salary Expense and a credit to Salaries Payable for $4,890.
Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 20 hours per day making the 400 boxes. a) Their productivity = 20 boxes/hour (round your response to two decimal places). Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 600 boxes per day. b) Their new productivity = 30 boxes/hour (round your response to two decimal places). c) The unit increase in productivity is 10 boxes/hour (round your response to two decimal places). d) The percentage LOADING... increase in productivity is nothing% (enter your response as a percentage rounded to two decimal places).
Answer: (d) 50%
Explanation:
Total hours invested per day = 20
Boxes produced in a day = 400 boxes
(a) Productivity per day (Old) = 20 boxes per hour
(b) Suppose they can increase the rate to 600 boxes per day, then,
New productivity per day = 30 boxes per hour
(c) Unit increase in productivity = 10 boxes per hour
(d) [tex]Percentage\ increase\ in\ productivity=\frac{New\ productivity-old\ productivity}{old\ productivity}\times100[/tex]
[tex]Percentage\ increase\ in\ productivity=\frac{30-20}{20}\times100[/tex]
= 50%
Final answer:
Chuck and his employees have a productivity of 20 boxes/hour. If they increase their production to 600 boxes per day, their new productivity would be 30 boxes/hour. The unit increase in productivity is 10 boxes/hour and the percentage increase is 50%.
Explanation:
a) The productivity of Chuck Sox and his three employees is calculated by dividing the number of boxes produced (400) by the total amount of time spent (20 hours). So the productivity is 20 boxes/hour.
b) If they can increase their production to 600 boxes per day, their new productivity would be calculated by dividing the number of boxes produced (600) by the same amount of time spent (20 hours). So the new productivity would be 30 boxes/hour.
c) The unit increase in productivity can be found by subtracting the initial productivity from the new productivity. In this case, it would be 30 - 20 = 10 boxes/hour.
d) The percentage increase in productivity can be calculated by dividing the unit increase in productivity by the initial productivity and multiplying by 100. In this case, it would be (10/20) × 100 = 50%.
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). 2017 2016 Net sales $4,850 $5,401 Cost of goods sold 3,701 3,500 Net income 75 100 Accounts receivable 75 110 Inventory 1,150 1,250 Total assets 2,950 3,250 Total common stockholders’ equity 920 1,090 Compute the following ratios for 2017. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) (a) Profit margin % (b) Asset turnover times (c) Return on assets % (d) Return on common stockholders’ equity % (e) Gross profit rate %
Answer:
Please see details below:
Explanation:
2017 - 2016
Profit Margin 1,5% - 1,9% ===> Net Income/Sales
Assets Turnover Time 1,64 - 1,66 ===> Sales / Total Assets
Return on Assets 2,5% - 3,1 % ===> Net Income / Total Assets
Return on common stockholders’ equity 8,2% - 9,2% ===> Net Income / Stockholder's Equity
Gross Profit Rate 23,7% - 35,2% ===> Gross Margin (Sales-COGS) / Sales
To compute the requested ratios for Barnes & Noble in 2017, we can use the given data. The profit margin is 1.55%, the asset turnover is 1.64 times, the return on assets is 2.54%, the return on common stockholders' equity is 8.15%, and the gross profit rate is 23.77%.
Explanation:To compute the requested ratios for Barnes & Noble in 2017, we can use the given data.
Profit margin %: This ratio measures the profitability of the company. It is calculated by dividing net income by net sales and multiplying by 100. In this case, the profit margin is (75/4850) * 100 = 1.55%.Asset turnover times: This ratio measures how efficiently the company uses its assets to generate sales. It is calculated by dividing net sales by total assets. In this case, the asset turnover is 4850/2950 = 1.64 times.Return on assets %: This ratio shows how effectively the company generates profits from its assets. It is calculated by dividing net income by total assets and multiplying by 100. In this case, the return on assets is (75/2950) * 100 = 2.54%.Return on common stockholders' equity %: This ratio measures the return earned by the common stockholders. It is calculated by dividing net income by total common stockholders' equity and multiplying by 100. In this case, the return on common stockholders' equity is (75/920) * 100 = 8.15%.Gross profit rate %: This ratio shows the gross profit earned on sales. It is calculated by subtracting the cost of goods sold from net sales, dividing by net sales, and multiplying by 100. In this case, the gross profit rate is (4850 - 3701)/4850 * 100 = 23.77%.Learn more about Financial ratios here:https://brainly.com/question/31531442
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Beg. of Year
End of Year
Raw Materials Inventory
$26000
$30852
Work in process inventory
$35000
$32867
Finished goods inventory
$14000
$28862
Purchases of DM
$73000
Direct Labor
$41484
Indirect Labor
$40000
Insurance on plant
$10000
Depreciation - plant building and equipment
$12747
Repairs and maintenance - plant
$4869
Marketing expenses
$76000
General & administrative expenses
$27354
What is Cost of Goods Sold?
Answer: $164,519
Explanation:
Direct Material used = Beg. Raw Materials Inventory + Purchases of DM - End. Raw Materials Inventory
= $26000 + $73000 - $30852
= $68,148
Direct labor cost = $41,484
Manufacturing overhead = Indirect Labor + Insurance on plant + Depreciation - plant building and equipment + Repairs and maintenance - plant
= $40000 + $10,000 + $12747 + $4869
= $67,616
Total manufacturing cost = Direct Material used + Direct labor cost + Manufacturing overhead
= $68,148 + $41,484 + $67,616
= $177,248
Cost of goods manufactured:
= Total manufacturing cost + Beg. Work in process inventory - End. Work in process inventory
= $177,248 + $35000 - $32867
= $179,381
Cost of goods sold = Cost of goods manufactured + Beg. Finished goods inventory - End. Finished goods inventory
= $179,381 + $14000 - $28862
= $164,519
Concord Corporation uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
Units Per unit price Total
Balance, 1/1/2017 240 $4.00 $960
Purchase, 1/15/2017 120 ..4.20 504
Purchase, 1/28/2017 120 ..4.40 528
An end of the month (1/31/2017) inventory showed that 190 units were on hand. If the company uses FIFO and sells the units for $8.00 each, what is the gross profit for the month?
Answer:
Gross profit= $1150
Explanation:
Giving the following information:
Beginning inventory: 240u*$4.00= $960
Purchase, (1/15/2017)= 120u*4.20= $504
Purchase, (1/28/2017)= 120u*4.40= $528
Ending inventory= 190u
The company uses FIFO (first in, first out).
Sale price= $8.00 each.
What is the gross profit for the month?
First, we need to calculate the number of units sold:
Sold units= Beginning inventory + purchase - ending inventory= 240 + 240 - 190= 290 units
Revenue= 290*8= $2320
Cost of goods sold= 240*$4 + 50*4.20= $1170
Gross profit= $1150
In addition, the balance of common stock at the beginning of the year was $650,000, and the balance of retained earnings was $50,000. During the year, the company issued additional shares of common stock for $34,000 and paid dividends of $28,000. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $ 54,400 Accounts payable $ 15,600 Supplies 12,700 Utilities payable 6,000 Prepaid rent 33,000 Salaries payable 5,300 Land 290,000 Notes payable 33,000 Required: 1. Prepare a statement of stockholders’ equity. 2. Prepare a balance sheet.
Answer:
Assets Liabilies
Cash 54,400 Account Payable 15,600
Supplies 12,700 Salaries Payable 5,300
Prepaid Rent 33,000 Utilities payable 6,000
Total Current Assets 100,100 Note Payable 33,000
Land 290,000 Total liabilities 59,900
Common Stock 684,000
RE -353,800(A)
Total Equity 330,200
Total Asets 390,100 Liab + SE 390,100
Common Stock Retained Earings Total
Balance Jan 1 650,000 50,000 700,000
Net Loss -375,800(B) -375,800
Dividends -28,000 -28,000
Stock issued 34,000 34,000
Balance, Dec 31 684,000 -353,800 330,200
Explanation:
(A)
We calcualte RE ending balance using the accounting equation:
Assets = Liabilities + Equity
390,100 = 59,900 + Common stock + RE
390,100 = 59,900 + (650,000 + 34,000) + RE
RE = 390,000 -59,900 - 684,000
RE = -353,800
Then we construct the Stockholders equity statement
(B)
net loss will be:
begining RE + income + dividend = ending RE
50,000 + income - 28,000 = -353,800
income= -353,800 +28,000 - 50,000 = -375,800 net loss as it is negative.
To prepare a statement of stockholders’ equity, calculate the ending balance of common stock by adding the beginning balance of common stock and the additional shares issued, and then subtracting the dividends paid. To prepare a balance sheet, list the assets and liabilities on December 31 and calculate the equity by subtracting the total liabilities from the total assets.
Explanation:To prepare a statement of stockholders’ equity, we need to consider the changes in common stock, retained earnings, additional shares issued, and dividends paid.
1. Beginning balance of common stock: $650,000
2. Beginning balance of retained earnings: $50,000
3. Additional shares of common stock issued: $34,000
4. Dividends paid: $28,000
To calculate the ending balance of common stock, we add the beginning balance and the additional shares issued, and subtract the dividends paid: $650,000 + $34,000 - $28,000 = $656,000
Therefore, the statement of stockholders’ equity shows an ending balance of common stock of $656,000.
To prepare a balance sheet, we list the assets and liabilities as of December 31:
Cash: $54,400Accounts payable: $15,600Supplies: $12,700Utilities payable: $6,000Prepaid rent: $33,000Salaries payable: $5,300Land: $290,000Notes payable: $33,000To calculate the equity, we subtract the total liabilities from the total assets: $54,400 + $12,700 + $33,000 + $290,000 - $15,600 - $6,000 - $33,000 - $5,300 = $340,200
Therefore, the balance sheet shows total assets of $397,400 and total liabilities and equity of $357,800.1
Joe runs the Service Division for a car dealership. The overall dealership has profit of $10 million on sales of $100 million and costs of $90 million. Joe’ s division contributed $9 million in sales and $7 million in costs. If the Service Division is evaluated as a profit center, what dollar amount is most relevant to Joe?
Answer:
The $2 million dollar amount is most relevant to Joe
Explanation:
Profit center: It is a center in which the amount is recorded as a profit which is to be calculated by subtracting the total cost from the revenue.
Since we have to compute the dollar amount as a profit center and we know the profit equals to
= Sales Revenue - total cost
So, = $9 million - $7 million = $2 million
The other items which are mentioned in the question are irrelevant. Hence, it is ignored
Ms. Pike, who lives in California, traveled to Oregon to purchase gold jewelry for $16,000. California has a 7.5 percent sales and use tax, while Oregon has no sales and use tax. Compute the use tax that Ms. Pike owes to California on the jewelry purchased in Oregon. Compute the use tax that Ms. Pike owes to California if she purchased the jewelry in New Mexico and paid that state’s 5.125 percent sales tax on the transaction.
Answer:
Pike owes $1200 in taxes is she the purchase $16,000 in Oregon and owes $820 in transactions if she purchase $16,000 in Oergon.
Explanation:
Re call that the total tax is the rate tax time the purchase amount.
T= R * P
Then the use tax that Pike owe to California for the purchase of $16,000 in Oregon Tc taking a rate of 7.5 percent is:
Tc = 0.075 * $16,000 = $ 1,200
The use tax that Pike owe to California for the purchase of $16,000 in New Mexicon Tn dont take into account the sales but the transaction rate of 5.125 percent:
Tn = 0.05125 * $16,000 = $820
For gold jewelry purchased in Oregon, Ms. Pike owes California a use tax of $1,200. If the jewelry was purchased in New Mexico, after paying the New Mexico sales tax, she would owe a use tax of $380 to California.
Explanation:When Ms. Pike purchased the jewelry in Oregon, where there is no sales tax, she would owe California, her home state, a use tax equivalent to what the sales tax would have been had she made the purchase in California. This is calculated by converting the California sales tax percentage to a decimal (0.075) and multiplying by the purchase price:
$16,000 x 0.075 = $1,200
So, Ms. Pike would owe $1,200 in use tax to the state of California for the jewelry purchased in Oregon.
If Ms. Pike traveled to New Mexico and purchased the same jewelry there, paying New Mexico's 5.125 percent sales tax, she would still owe California a use tax. However, in this case, the use tax owed is the difference between the California tax and the tax already paid in New Mexico. First, calculate the tax paid in New Mexico:
$16,000 x 0.05125 = $820
Then, subtract this amount from the California tax:
$1,200 - $820 = $380
So, if the jewelry was purchased in New Mexico, Ms. Pike would owe $380 in use tax to the state of California.
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Ashley and Benjamin are the sole owners of Super Corporation. Ashley owns 40% of the stock and Benjamin owns 60%. Several years after the creation of the corporation, Ashley contributes an additional $20,000 in cash and Benjamin contributes additional property with a fair market value of $30,000 and an adjusted basis of $25,000.
What amount of income is recognized by Super Corporation as a result of these contributions?
Answer:
NONE
Explanation:
The corporation do not recognize income from the contribution of partners. Dong so, will false the revenue recognition as it would be generated at will fom the partners and then distribute as "dividends" while in fact they are moving cash form one place to another
The difference in the property fair value and the adjusted basis will be a gain on Benjamin not for the Partnership
When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?
a. Treasury stock for the par value and paid-in capital in excess of par for the excess of
the purchase price over the par value.
b. Paid-in capital in excess of par for the purchase price.
c. Treasury stock for the purchase price.
d. Treasury stock for the par value and retained earnings for the excess of the purchase
price over the par value.
Answer:
c. Treasury stock for the purchase price
Explanation:
At purchase Treasury Stock will be debited by the amount of the purchase
And cash credited by the same amount
Then, when selling this Stock a difference in price betwene the sales price and the purchase price will be adjusted using additional paid-in treasury stock. But this accounts is not used when the purchase is made, neither common stock.
Under the cost method of treasury stock accounting, the treasury stock account is debited for the entire purchase price of the stock, regardless of its par value. Therefore, answer (c) Treasury stock for the purchase price, is correct.
Explanation:When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, the account that should be debited is the Treasury Stock for the purchase price. This means the correct answer is (c) Treasury stock for the purchase price.
The Cost Method of treasury stock accounting involves recording the repurchase of treasury stock at the total cost at which the stock is procured without considering the stock's par value. This entire cost is debited to the treasury stock account and credit is given to cash or equivalent for the purchase value. When the stock is subsequently resold, it will be credited for the initial cost plus credited or debited with the gain or loss on its resale.
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Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow:
Factory rent $ 3,030
Company advertising 1,060
Wages paid to assembly workers 31,400
Depreciation for salespersons’ vehicles 2,140
Screws 595
Utilities for factory 825
Assembly supervisor’s salary 3,640
Sandpaper 125
President’s salary 5,050
Plastic tubing 4,080
Paint 240
Sales commissions 1,330
Factory insurance 1,010
Depreciation on cutting machines 2,120
Wages paid to painters 8,000
Assume that Suzie Whitson has decided to begin production of her outdoor children’s toy.
Required:
1 and 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost.
Answer:
Factory rent $ 3,030: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 31,400: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,140: Period - Fixed
Screws 595: Product - DM - Variable
Utilities for factory 825: Product - MOH - Variable
Assembly supervisor’s salary 3,640: Product - MOH - Fixed
Sandpaper 125: Product - MOH - Variable
President’s salary 5,050: Period - Fixed
Plastic tubing 4,080: Product - MOH - variable
Paint 240: Product - DM - Variable
Sales commissions 1,330: Period - Variable
Factory insurance 1,010: Product - MOH - fixed
Depreciation on cutting machines 2,120: Product - MOH - Fixed
Wages paid to painters 8,000: Product - DL - Variable
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
- Variable cost is a corporate expense that changes in proportion to production output.
- Fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
In this exercise:
Factory rent $ 3,030: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 31,400: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,140: Period - Fixed
Screws 595: Product - DM - Variable
Utilities for factory 825: Product - MOH - Variable
Assembly supervisor’s salary 3,640: Product - MOH - Fixed
Sandpaper 125: Product - MOH - Variable
President’s salary 5,050: Period - Fixed
Plastic tubing 4,080: Product - MOH - variable
Paint 240: Product - DM - Variable
Sales commissions 1,330: Period - Variable
Factory insurance 1,010: Product - MOH - fixed
Depreciation on cutting machines 2,120: Product - MOH - Fixed
Wages paid to painters 8,000: Product - DL - Variable
The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables?
(A) The interest rate (I) that could be earned by deposited funds
(B) The present value (PV) of the amount deposited
(C) The duration of the deposit (N)
(D) The trend between the present and future values of an investment
(E) All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the deposit or investment period.
Final answer:
The process for converting present values into future values is called compounding and does not require the trend between present and future values as a variable.
Explanation:
The process for converting present values into future values is known as compounding. In this context, the necessary variables include the interest rate (I), the present value (PV) of the amount deposited, and the duration of the deposit (N). The option that is not required for this process is (D) The trend between the present and future values of an investment. The relationship between the future and present values is inherently defined by the compounding formula, not a separate variable to be considered.
What is the effect on the financial statements of recording depreciation on equipment? A. Net income and assets are decreased, but stockholders' equity is not affected. B. Assets are decreased, but net income and stockholders' equity are not affected. C. Net income is not affected, but assets and stockholders' equity are decreased. D. Net income, assets, and stockholders' equity are all decreased.
Answer: The answer is "D. Net income, assets, and stockholders' equity are all decreased.".
Explanation: This happens because the recording of the depreciation of equipment reflects the loss of value of the asset, which is a negative result that impacts the results, the value of the assets, and as a consequence in the stockholders' equity.
Ace Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?a. $50 per shareb. $50,000 in totalc. $5,000 in totald. $0.50 per share
Answer:
b. $50,000 in total
Explanation:
Preference shareholders: The preference shareholders are that shareholders who receive the divided before equity shareholders
The computation of the annual dividend is shown below:
= Number of shares × price per share × rate
= 10,000 shares × $100 × 5%
= $50,000
The annual dividend for preference shareholders will be computed by applying the number of shares, the price per share, and the rate.
Consider the following restaurants: Pizza Hut, Popeyes, and Taco Bell. When conducting a review on any business, the first thing that needs to completed is a SWOT Analysis (strengths, weaknesses, opportunities and threats). This analysis helps a business know where they excel at and where they need to work at, as well as, what they can take advantage of out in the environment, as well as threats they need to prepare for
Answer:
Strengths:
- Name recognition is the biggest strength.
- they offer variety of products than its competitors and the products are of good quality at an affordable price.
Weaknesses:
- As it is being run as full-fledged restaurant overhead cost is high. this means their overhead cost is higher.
- They mostly cover urban areas with a considerable population and customer segment.
Opportunities:
- They have further scope to increase their product line according to the location and increase the revenue.
- Their facilities can be made more attractive and innovative to engage more customers.
- the business can lend and promote discounts to increase the satisfaction level of the customer.
Threats:
- increasing competition.
- Raising raw material price, especially dairy products that costomers want/need.
the business should work on:
The company has to focus more on new product development. Further, it is recommended to customize the taste of the product according to the local needs. Also, if the overhead cost is reduced by implementing modern and more economical infrastructure facility. The company has to make sure that, the facility also attract more customers. This would be added advantage to provide more offers and discounts to the customer. Hence this would increase customer satisfaction and bring more loyal customers.
Explanation:
A SWOT analysis is a tool used in business to evaluate a company's strengths, weaknesses, opportunities, and threats.
Explanation:A SWOT analysis is commonly used in the field of business to evaluate the strengths, weaknesses, opportunities, and threats of a company or organization. It helps businesses identify their internal strengths and weaknesses, such as strong brand reputation or poor customer service, and external opportunities and threats, such as emerging market trends or intense competition. By conducting a SWOT analysis, businesses can gain insight into their current situation and make informed decisions on how to improve and capitalize on their strengths while addressing their weaknesses and threats.
Harriet operates a coffee shop. One of her customers wants to buy two kinds of beans: Arabian Mocha and Colombian Decaf. If she wants twice as much Arabian Mocha as Colombian Decaf, how much of each can she buy for a total of $144.00144.00? (Prices are listed to the right.)
Answer:
it will purchase
96 dollars of Arabian Mocha
and 48 dollars of Colombian Decaf
Explanation:
we build the equation system:
[tex]144 = x + y \\ x = 2y[/tex]
we replace the second expression on the first and solve for y
144 = (2y) + y
144 = 2y + 1y
144= 3y
144/3 = y
48 = y
now we solve for x
x= 2y
x= 2 times 48 = 96
Shoe Shine is a local retail shoe store located on the north side of Centerville. Annual demand for a popular sandal is 500 pairs, and John Dirk, the owner of Shoe Shine, has been in the habit of ordering 100 pairs at a time. John estimates that the ordering cost is $10 per order. The cost of the sandal is $5 per pair. For John's ordering policy to be correct, what would the carrying cost as a percentage of the unit cost have to be? If the carrying cost were 10% of the cost, what would the optimal order quantity be?
Answer:
The optimal order will be of 100 units
Explanation:
We will solve this using the EOQ (economic order quantity) formula:
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
D = annual demand 500 units
S= setup cost = ordering cost = 50.00 dollars
H= Holding Cost = 5.00 dollars
[tex]Q_{opt} = \sqrt{\frac{2\times 500 times 50}{5}}[/tex]
EOQ = 100
In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity...
a. decreased by 8%.
b. was unchanged.
c. increased by 6.8%.
d. increased by 7.3%.
Answer: Option (a) is correct.
Explanation:
Given that,
In 2010,
Bags of pretzels produced = 300,000
Employing = 12,000 hours of labor
Acme Foods productivity = [tex]\frac{300,000}{12,000}[/tex]
= 25 bags of pretzels produced per labor hour
In 2011,
Bags of pretzels produced = 322,000
Employing = 14,000 hours of labor
Acme Foods productivity = [tex]\frac{322,000}{14,000}[/tex]
= 23 bags of pretzels produced per labor hour
Therefore,
Acme Foods productivity decreased by = [tex]\frac{Productivity\ in\ 2010\ - Productivity\ in\ 2011}{Productivity\ in\ 2010} \times100[/tex]
= [tex]\frac{25 - 23}{25} \times100[/tex]
= 8%
On January 1 of the current year, Chuy Company paid $ 1 comma 800 in rent to cover six months (January - June). Chuy recorded this transaction as follows: LOADING...(Click the icon to view the transaction.) Chuy's adjusting entry at the end of February included a debit to Rent Expense in the amount of $ 300. What effect does the adjusting entry have on Chuy's net income for February? A. Net income will increase by $ 300 B. Net income will decrease by $ 600 C. Net income will decrease by $ 300 D. Net income will increase by $ 600
Answer:
C. Net income will decrease by $ 300
Explanation:
rent expense 300 debit
prepaid rent 300 credit
the entry decrease the prepaid expense (asset) and recognize the accrued expense for the period (rent of February)
As this entry recognzie an expense, the net income decreases by this amount as it decrases the net proceeds from revenues
Inventory records for Dunbar Incorporated revealed the following:
Date Transaction Number ofUnits Unit Cost
Apr. 1 Beginning inventory 500 $2.13
Apr. 20 Purchase 310 2.63
Dunbar sold 620 units of inventory during the month. Ending inventory assuming LIFO would be (Do not round your intermediate calculations. Round your answer to the nearest dollar amount):
Answer:
Ending inventory= $404.7
Explanation:
Giving the following information:
Date Transaction Number of Units Unit Cost
Apr. 1: Beginning inventory 500units at $2.13
Apr. 20 Purchase 310 units at $2.63
Dunbar sold 620 units of inventory during the month.
What is the ending inventory assuming LIFO (last in, first out)?
Ending inventory (in units)= beginning inventory + purchase - sold units
Ending inventory (in units)= 500 + 310 - 620= 190 units
Ending inventory ($)= 190*2.13= $404.7