Answer: See explanation
Explanation:
1. Based on the information given in the question, there'll be a retained earning statement of:
= $1090000 × (1 - 30%).
= $1090000 × 70%
= $1090000 × 0.7
= $763000
There'll be a retained earnings statement as of $763,000 addition to the beginning balance.
2. Based on the information given in the question, the net income was overstated by $100,000 since the depreciation expense hasn't been deducted. Therefore, the correct option is A ''Overstated by $100,000".
3. The amount that will be debited to the Construction in Process account, to record the change at the beginning of 2021 will be:
= ($750000 - $450000) + ($375000 - $300000)
= $300000 + $75000
= $375000
Easton Corporation is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected initial cost of $1,000,000. It has an expected life of six years, with no salvage value, and is expected to generate annual cost savings of $250,000. Based on Easton Corporation's analysis, the project has a net present value of $57,625.
1. Refer to Rhodes Corporation. What discount rate did the company use to compute the net present value? Present value tables or a financial calculator are required.
a. 10 %
b. 11 %
c. 12 %
d. 13 %
2. Refer to Rhodes Corporation. What is the project's profitability index?
a. 1.058
b. .058
c. .945
d. 1.000
3. Refer to Rhodes Corporation. What is the project's internal rate of return? Present value tables or a financial calculator are required.
a. between 12.5 and 13.0 percent
b. between 11.0 and 11.5 percent
c. between 11.5 and 12.0 percent
d. between 13.0 and 13.5 percent
Answer and Explanation:
1. The discount rate is
If we go through the options
like we assume 10%
So, the net present value is
= ($250,000 × 4.3553) - $1,000,000
= $1,088,825 - $1,000,000
= $88,825
Now if the discount rate is 11%
So, the net present value os
= ($250,000 × 4.2305) - $1,000,000
= $1,057,625 - $1,000,000
= $57,625
So the net present value is $57,625
2. The profitability index is
= ($1,000,000 + $57,625) ÷ ($1,000,000)
= 1.058
3. The internal rate of return is
It is 12.98% that lies between 12.5% and 13%
Metlock, Inc. reported net income of $205,840 for 2022. Metlock, Inc. also reported depreciation expense of $37,750 and a loss of $4,660 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,940 for the year, a $15,790 increase in accounts payable, and a $4,300 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Please see below
Explanation:
Metlock Inc.
Preparation of Operating activities section of the statement of cash flows for 2022
Net income
$205,840
Adjustment to reconcile net income
to net cash provided by operating activities
Depreciation expense
$37,750
Loss on disposal of plant asset
$4,660
Account receivable increase
($15,940)
Prepaid expense increase
($4,300)
Accounts payable decrease
$15,790
Net cash provided by operating activities
$243,800
The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how much it pays does not affect either its cost of capital or its stock price.
a) true
b) false
Answer:
b) false
Explanation:
In the case of theory that developed by MM in this the investor have no need for concering with respect to the dividend policy of the company as in this the sell option is there with regard to the equity portfolio when they need the cash
So according to the given situation, the given statement is false
hence the option b is correct
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Units produced this year 35,000 units
Units sold this year 21,000 units
Direct materials $19 per unit
Direct labor $21 per unit
Variable overhead $3 per unit
Fixed overhead $175,000 in total
Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000. Compute the net income under absorption costing.
Answer:
$183,000
Explanation:
Advanced Company
Income Statement for the year - absorption costing
Sales ($71 x 21,000 units) $1,491,000
Less Cost of Sales ($1,008,000)
Gross Profit $483,000
Less Expenses
Operating expenses ($300,000)
Net Income $183,000
where,
Cost of Sales = Units Sold x Product Cost
= 21,000 x $48
= $1,008,000
Product Cost = all manufacturing costs (absorption costing)
= $19 + $21 + $3 + ($175,000 ÷ 35,000)
= $48
Brightstone Tire and Rubber Company has capacity to produce 179,000 tires. Brightstone presently produces and sells 137,000 tires for the North American market at a price of $93 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 21,000 tires for $76.85 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:
Direct materials $54
Direct labor 24
Factory overhead (62% variable) 24
Selling and administrative expenses (44% variable) 25
Total $127.00
Brightstone pays a selling commission equal to 4% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.65 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $165,424.
Required:
a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors.
b. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors
c. What is the minimum price per unit that would be financially acceptable to Brightstone?
Answer:
A. Reject (Alternative 1) $0
Accept (Alternative 2) -$815,584
Differential effect Income (Alternative 2) -$815,584
B. Goodman should REJECT the special order from Euro Motors
C.$115.69
Explanation:
a. Preparation of a differential analysis dated January 21
DIFFERENTIAL ANALYSIS
Reject (Alternative 1) Accept (Alternative 2) Differential effect Income (Alternative 2)
Revenues $0 $1,613,850 $1,613,850
(21,000 tires × $76.85 per tire)
Costs:
Direct materials 0 –$1,134,000 $1,134,000
(21,000 tires × $54 per tire)
Direct labor 0 –$504,000 $504,000
(21,000 tires × 24 per tire)
Variable factory overhead 0 –$312,480 $312,480
[21,000 tires × ($24 per tire × 62%)]
Variable selling and admin.
expenses 0 –$152,880 $152,880
21,000 tires × [(25 per tire × 44%) – ($93 × 4%)]
Shipping costs 0 –$160,650 $160,650
(21,000 tires × $7.65 per tire)
Certification costs 0 –$165,424 –$165,424
Income (Loss) $0 -$815,584 -$815,584
B. Based on the above Differentials analysis Brightstone should REJECT the special order from Euro Motors.
C. Calculation to determine minimum price per unit that would be financially acceptable to Brightstone
Minimum price per unit =$76.85-(-$815,584/21,000)
Minimum price per unit =$76.85-(-$38.84)
Minimum price per unit=$115.69
Therefore minimum price per unit that would be financially acceptable to Brightstone is $115.69
the objective section of a resume should consist of no more than:
A. One to two sentences
B. One page
C. A half-page
D. One paragraph
Answer:A
Explanation:
A p e x
Answer:
A. One to two sentences
Explanation:
You dont want whomever is reading your resume to think that you are full of yourself.
Selected financial information for ELX Corporation is reproduced below: 1. Net operating assets (NOA) turnover (average NOA equals ending NOA) is 4. 2. Net operating profit after tax (NOPAT) margin is 6% 3. Leverage ratio (average net financial obligation to average common equity) is 2.5, and the spread is 7.3%. What is ELX's return on common equity
Answer:
the Return on common equity is 43.45%
Explanation:
The computation of the return on common equity is shown below;
As we know that
Return on common equity = Return on net operating assets + leverage × spread
= (4.2 × 6%) + 2.5 × 7.3%
= 25.2% + 18.25%
= 43.45%
Hence, the Return on common equity is 43.45%
The above formula should be applied for the same
Explain the impact of taxation on the valuation of a country's currency
Answer:
The value of a currency depends on factors that affect the economy such as imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices
Daily Enterprises is purchasing a $10.4 million machine. It will cost $46,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $3.9 million per year along with incremental costs of $1.3 million per year. Daily's marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily Enterprises. Whatare the incremental free cash flows associated with the new machine?
Answer:
$2,421,220
Explanation:
Calculation to determine incremental free cash flows associated with the new machine
First step is to calculate The cost of depreciation
Cost of depreciation= $10,4000,00 + $46,000/ 5
Cost of depreciation= $2,089,200
Now let calculate the Incremental free cash flows
Incremental free cash flows = ( $3.9 million - $1,300,000) * (1 - 0.35) + $2,089,200* 0.35
Incremental free cash flows = $1,690,000 + $731,220
Incremental free cash flows=$2,421,220
Therefore the incremental free cash flows associated with the new machine is $2,421,220.
Normally you will see US Labor Productivity Increasing at an annual rate of around 6%. In reading the book you should see that it must continue to increase for our country to continue to have the standard of living that we do. What seemed odd to me was that in the 3rd Quarter of 2009, while our country is in the midst of a very deep recession, this number went to 14.8%. In the 4th Quarter it dropped to 6.4% and in the 1st Quarter of this year it was at 2.5%. Why the Big Spike in the 3rd Quarter of 2009
Answer: c) Employees are fearful of losing their jobs, so they are working harder and complaining less.
Explanation:
Research has shown that during periods of recession, people tend to work harder than they do before the recession which has the effect of boosting productivity levels during that period.
The simply reason for this is, fear. In a recession, businesses come under a lot of pressure to reduce their workforce in order to save costs which leads to a rise in unemployment. Workers that are laid off are usually the unproductive ones so workers begin to put in more work during this time so that they do not get laid off.
On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jamie was laid off from her job. On February 1, year 2, Jamie sold the home at a $45,500 gain. She sold the home because she found a new job in a different state. How much of the gain, if any, may Jamie exclude from her gross income in year 2
Answer: $31,250
Explanation:
The amount from the gain that Jamie may exclude from her gross income in year 2 will be calculated thus:
= $250,000 × 3/24
= $31,250.
Therefore, Jamie may exclude $31,250 from the gross income in year 2.
Thanks
What cost of living?
Need help please
Budgeted sales commissions would appear on the: A. sales budget and pro forma balance sheet. B. sales budget and pro forma income statement. C. selling, general, and administrative budget and pro forma balance sheet. D. selling, general, and administrative budget and pro forma income statement.
Answer:
Option d: Selling, general and administrative budget and the pro forma income statement
Explanation:
Budgeting
This is simply defined as the showing forth the plans for a business in financial terms. It is said to be a plan to help you an individual to monitor and manage money wisely ans can it one to achieve short term, intermediate, and long term goals in a timely manner.
The notable arrangements of most master budgets are prepared in is sales, purchases, cash and income statement. Budgeted sales commissions is said to visibly shown on the selling, general and administrative budget and the pro forma income statement.
A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital market. Flotation costs are expected to total $1 per share. The dividends paid on the outstanding stock over the past five years are as follows: The cost of this new issue of common stock is ________.
Answer:
D) 12.8 percent
Explanation:
Calculation to determine what The cost of this new issue of common stock is
Using this formula
Cost of common stock new issue= D1 ÷ P0 + g
Where,
D1 =$5.61
P0=$98
g=[($5.61 - $5.24) ÷ $5.24]=7.06%
Let plug in the formula
Cost of common stock new issue = ($5.61 ÷ $98*100) + 7.06%
Cost of common stock new issue= 5.72% + 7.06%
Cost of common stock new issue= 12.78%
Cost of common stock new issue= 12.8 % (Approximately)
Therefore The cost of this new issue of common stock is 12.8%
You work for a mature company with a long history in the industry and have been given stock options. Which of the following are you most likely wanting to see happen with top line (revenue) and bottom line (net profit) growth rates?
A. Top line and bottom line holding steady without much variation.
B. Top line growing faster than bottom line.
C. Bottom line growing faster than top line.
D. Both top and bottom line growing at the same rate.
Answer: D. Both top and bottom line growing at the same rate.
Explanation:
Based on the information given in the question, the most likely thing will be for the top and bottom line growing at the same rate. This implies that both the revenue and the net profit grow at same rate.
It's vital for them to grow at a steady rate in order to ensure stability. The top line growing faster than bottom line or the bottom line growing faster than top line isn't good for the stock options.
Why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run? Choose one: A. Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost). B. Because the zero profit in the long run is, in fact, zero accounting profit, and it matters only in the books. C. Because in the short run, her profit is always positive. D. Because the producer has a high cost of exiting this market, and it is better for her to continue operating at zero profit.
Answer:
Option A : Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).
Explanation:
Perfectly Competitive Market
This is simply a market the market participants are said to be price takers that is no consumption decisions by individual consumers and no production decisions by individual producers can be able to affect the market price of a good.
Perfectly Competitive Industry
This is simply an industry where producers are said to be price takers.
Explicit Costs
These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.
Implicit Costs
These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.
It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.
Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 0.75, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? Do not round intermediate calculations. a. $27.80 b. $33.23 c. $31.63 d. $28.76 e. $31.95
Answer:
Option E is correct
Price of share = $31.95
Explanation:
The price of the share is the future dividend discounted at the required rate of return .
The required rate of return is the cost of equity . The cost of equity is computed as follows:
Cost of equity = Rf + β(Rm-Rf)
Rf= 4.50, Rm= 10.50, β= 0,75
Ke= 4.50% + 0.75×(10.50-4.50)
Ke= 9%
Price of share = Do×(1+g)/(Ke-g)
Price of the share = 0.75 × (1.065)/(0.09-0.065)
= 31.95
Price of share = $31.95
Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on excess reserves rate from 1% to 0.5% has no effect on the federal funds rate. has an indeterminate effect on the federal funds rate. lowers the federal funds rate. raises the federal funds rate.
Answer: lowers the federal funds rate.
Explanation:
The federal funds rate is the rate at which banks lend money to their selves overnight to ensure that they meet lending and reserve requirements.
The interest rate paid on excess reserves rate is the amount of interest that the Fed pays banks to keep excess reserves. If this rate was to decrease, banks would have less incentive to keep excess reserves at the Fed and so would have more money to meet lending and reserve requirements such that they won't need to borrow from other banks as much which would then lead to the federal funds rate decreasing due to less demand.
Qu. 10-150 (Algo) Majer Corporation makes a product with ... Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.4 ounces $ 2.00 per ounce $ 12.80 Direct labor 0.5 hours $ 15.00 per hour $ 7.50 Variable overhead 0.5 hours $ 2.00 per hour $ 1.00 The company reported the following results concerning this product in February. Originally budgeted output 5,100 units Actual output 6,000 units Raw materials used in production 33,400 ounces Actual direct labor-hours 1,860 hours Purchases of raw materials 35,800 ounces Actual price of raw materials $ 47.10 per ounce Actual direct labor rate $ 37.60 per hour Actual variable overhead rate $ 5.60 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for February is:
Answer:
Direct material quantity variance= $10,000 favorable
Explanation:
Giving the following information:
Standard Direct materials 6.4 ounces $ 2.00 per ounce.
Actual output 6,000 units
Raw materials used in production 33,400 ounces
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (6.4*6,000 - 33,400)*2
Direct material quantity variance= (38,400 - 33,400)*2
Direct material quantity variance= $10,000 favorable
Tristar Production Company began operations on September 1, 2016. Listed below are a number of transactions that occurred during its first four months of operations.
a. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $240,000 in cash for the property. According to appraisals, the land had a fair value of $169,000 and the building had a fair value of $91,000.
b. On September 1, Tristar signed a $54,000 noninterest-bearing note to purchase equipment. The $54,000 payment is due on September 1, 2022. Assume that 9% is a reasonable interest rate.
c. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,900.
d. On September 18, the company paid its lawyer $4,500 for organizing the corporation.
e. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $29,000 and $1,200 in freight charges also were paid.
f. On December 2, Tristar acquired various items of office equipment. The company was short of cash and could not pay the $6,900 normal cash price. The supplier agreed to accept 200 shares of the company's no-par common stock in exchange for the equipment. The fair value of the stock is not readily determinable.
g. On December 10, the company acquired a tract of land at a cost of $34,000. It paid $4,500 down and signed a 11% note with both principal and interest due in one year. Eleven percent is an appropriate rate of interest for this note.
Required:
Prepare journal entries to record each of the above transactions.
Answer:
Tristar Production Company
a. September 1, Debit Land $156,000
Debit Building $84,000
Credit Cash $240,000
To record the purchase of land, which had a fair value of $169,000 and building, which had a fair value of $91,000.
b. September 1, Debit Equipment $54,000
Credit Notes Payable $54,000
To record the purchase of equipment with a note.
Assume that 9% is a reasonable interest rate.
c. September 15, Debit Truck $3,900
Credit Donation $3,900
To record the receipt of a truck through donation.
d. September 18, Debit Attorney Fee $4,500
Credit Cash $4,500
To record the payment of legal fees for organizing the corporation.
e. October 10, Debit Maintenance Equipment $30,200
Credit Cash $30,200
To record the purchase of equipment for $29,000 and $1,200 in freight.
f. December 2, Debit Office equipment $6,900
Credit Common stock $6,900
To record the purchase of office equipment with 200 shares of no-par common stock in exchange for the equipment.
g. December 10, Debit Land $34,000
Credit Cash $4,500
Credit 11% Notes Payable $29,500
To record the purchase of land for cash and notes payable.
Explanation:
a) Data and Calculations:
a. September 1, Land $156,000 Building $84,000 Cash $240,000
land had a fair value of $169,000 and the building had a fair value of $91,000.
b. September 1, Equipment $54,000 Notes Payable $54,000
Assume that 9% is a reasonable interest rate.
c. September 15, Truck $3,900 Donation $3,900
d. September 18, Attorney Fee $4,500 Cash $4,500
for organizing the corporation.
e. October 10, Maintenance Equipment $30,200 Cash $30,200
$29,000 and $1,200 in freight charges also were paid.
f. December 2, Office equipment $6,900 Common stock $6,900
200 shares of no-par common stock in exchange for the equipment.
g. December 10, Land $34,000 Cash $4,500 11% Note Payable $29,500
What are the most relevant cultural values affecting the consumption of each of the following?
Describe how and why these values are particularly important.
Milk
Fast food
Answer:
gghjfjfjtfttftftfftuhugh
Explanation:
The average height of members of the high school basketball team is six feet, three inches. Jerry is on the high school basketball team, so Jerry must be taller than six feet. The argument above is flawed because it confuses:_________
Answer:
The argument is confusing an average for the individuals who make up that average.
Explanation:
The argument assumes that the height of all members of the team is above 6 ft. this is flawed because it assumes that the average height is equal to the height of the members of the team
for example, there are two members in the team
assume that the height of each member is 6 ft 3 inches. the average height is 6 ft 3 inches
Assume that the height of one member is 10.6 in and jerry's height is 2.0. the average height is 6 ft 3 inches. Here Jerry's height is less than 6ft
Corporation was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2021, QWN had the following transactions relating to shareholders' equity:
Issued 10,400 shares of common stock at $5.80 per share.
Issued 19,600 shares of common stock at $9.30 per share.
Reported a net income of $106,000.
Paid dividends of $53,000.
Purchased 2,600 shares of treasury stock at $11.30 (part of the 19,600 shares issued at $9.30).
Required:
What is total shareholders' equity at the end of 2021?
Answer:
Total stochkholders' equity = $266,220
Explanation:
Total stockholders' equity
10,400 x $5.80 = $60,320
19,600 x $9.30 = $182,280
Net income (retained earnigns) = $106,000
Paid cash dividends = -$53,000
Purhcase of treasury stocks = -2,600 x $11.30 = -$29,380
Total stochkholders' equity = $266,220
Intermediate targets are Group of answer choices financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals. interim goals set on the way to fully achieving policy goals. targets the Fed hopes to achieve by June of each year. targets for policy goals that are of secondary importance.
Answer:
financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Intermediate targets can be defined as financial and economic variables which aren't directly under the control of the Federal Reserve (central bank) but they try to use them to influence policy actions or goals within a specific period of time.
Hence, intermediate targets are financial or economic variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.
what is human rights
Answer:
Human rights are the basic rights and freedoms that belong to every person in the world, from birth until death. ... These basic rights are based on shared values like dignity, fairness, equality, respect and independence. These values are defined and protected by law.
Carlisle Transport had $4,716 cash at the beginning of the period. During the period, the firm collected $1,517 in receivables, paid $2,182 to supplier, had credit sales of $5,351, and incurred cash expenses of $500. What was the cash balance at the end of the period
Answer:
the cash balance at the end of the period is $3,551
Explanation:
The computation of the cash balance at the end of the period is shown below:
= Cash Balance at beginning of the period + received from receivables - paid to suppliers- cash expenses
= $4,716 + $1,517 - $2,182 - $500
= $3,551
Hence, the cash balance at the end of the period is $3,551
The above formula should be used for the same
Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $600,000, and that 2018 year-end bonuses to employees will total $1,200,000. In Mayo's interim income statement for the six months ended June 30, 2018, what is the total amount of expense relating to these two items that should be reported
The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:
Sales at $450,000, all for cash.
Merchandise inventory on October 31 was $200,000.
The cash balance November 1 was $18,000.
Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
Budgeted depreciation for November is $25,000.
The planned merchandise inventory on November 30 is $230,000.
The cost of goods sold is 70% of the selling price.
All purchases are paid for in cash.
There is no interest expense or income tax expense.
The budgeted cash receipts for November are:_____.
a. $315,000.
b. $450,000.
c. $135,000.
d. $475,000.
Answer:
im not sure
Explanation:
The budgeted cash receipts for November are there.
What is a budget?A budget You can prepare for your income and expenses over the course of a specific time period using a budget. Making a monthly budget, for instance, considers where your income and expenses will go each month. "A budget is frequently a dirty term or has a nasty ring to it.
Simply said, a budget is a spending plan that accounts for both present and future sources of income and expenses. A budget ensures that your spending is under control and that your savings are on track for the future.
CoGS = Opening Inventory + Purchases - Closing Stock
315,000 = 200,000 + P - 230,000
Purchases = $345,000
Particulars$Sales450,000(-) CoGS(345,000)(-) Selling and Adinistrative Expenses(60,000)Change in Cash45,000(+) Opening Balance of cash18,000Closing balance of Cash63,000
Budgeted Cash Receipts are $450,000 (Sales Receipts) for November. However, the cash budget is $63,000.
Therefore, Thus option (B) is correct.
Learn more about budget here:
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Your child is planning attend summer camp for 3 months, starting 12 months from now. The cost for camp is $2,676 per month, each month, for the 3 months she will attend. If your investments earn 2.3% APR (compounded monthly), how much must you invest each month, starting next month, for 3 months such that your investment will grow to just cover the cost of the camp
Answer:
Monthly deposit= $2,625.16
Explanation:
Giving the following information:
Total cost= 2,676*3= $8,028
Monthly interest rate0 0.023/12= 0.00192
First, we need to calculate the nominal value required at the end of the third month:
PV= FV / (1 + i)^n
FV= 8,028
i= 0.00192
n= 9 months
PV= 8,028 / (1.00192^9)
PV= $7,890.6
Now, the monthly investment to reach $7,890.6:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (7,890.6*0.00192) / [(1.00192^3) - 1]
A= $2,625.16
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the equipment at a cost of $320,000 and lists a cash selling price of $437,424. Appropriate adjusting entries are made quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $24,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset 5 years
Interest rate charged by the lessor 4%
Required:
1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018.
2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018.
Answer:
Eye Deal Optometry and Insight Machines
Journal Entries for Eye Deal:
Debit Right of Use Asset $437,424
Credit Lease Liability $437,424
To record the right of use asset and lease liability.
Debit Lease Liability $22,906.44
Debit Interest Expense $1,093.56
Credit Cash $24,000
To record the first lease payment and interest expense.
March 31, 2018:
Debit Lease Liability $22,843.71
Debit Interest Expense $1,156.29
Credit Cash $24,000
To record the second lease payment and interest expense.
Journal Entries for Insight:
January 1, 2018:
Debit Lease Receivable $437,424
Credit Lease Asset $437,424
To record the lease receivable and asset.
Debit Cash $24,000
Credit Lease Receivable $22,906.44
Credit Interest Revenue $1,093.56
To record the first lease receipt and interest revenue.
March 31, 2018:
Debit Cash $24,000
Credit Lease Receivable $22,843.71
Credit Interest Revenue $1,156.29
To record the second lease receipt and interest revenue.
Explanation:
a) Data and Calculations:
Cost of equipment = $320,000
Cash selling price (fair market value/PV) = $437,424
Lease term = 5 years (20 quarterly periods)
Quarterly lease payments = $24,000
Lease Schedule for the first year:
Period PV PMT Interest FV
Jan. 1, 2018 $437,424.00 $24,000.00 $1,093.56 $462,517.56
Mar. 31 $462,517.56 $24,000.00 $1,156.29 $487,673.85
June 30 $487,673.85 $24,000.00 $1,219.18 $512,893.04
Sept. 30 $512,893.04 $24,000.00 $1,282.23 $538,175.27
Dec. 31 $538,416.17 $24,000.00 $1,406.04 $563,822.21