A reconciliation of Zack's Company's pretax accounting income with its taxable income for 2018, its first year of operations, is as follows: Pretax accounting income $3,000,000 Excess tax depreciation (150,000) Taxable income $2,850,000 The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2018, 35% in 2019 and 2020, and 30% in 2021. The total deferred tax liability to be reported on Charles's balance sheet at December 31, 2018, is

Answers

Answer 1

Answer:

the total deferred tax liability is $50,000

Explanation:

The computation of the total deferred tax liability is shown below:

Tax Depreciation 2019  $17500  {[$150000 ÷ 3] × 35%}  

Tax Depreciation 2020 $17500  {[$150000 ÷ 3] × 35%}  

Tax Depreciation 2021 $15000  {[$150000 ÷ 3] × 30%}  

Total Deferred Tax Liability $50,000

Hence, the total deferred tax liability is $50,000


Related Questions

Essence of Skunk Fragrances, Ltd., sells 5,750 units of its perfume collection each year at a price per unit of $445. All sales are on credit with terms of 1/10, net 40. The discount is taken by 35 percent of the customers.

Required:
What is the amount of the company's accounts receivable?

Answers

Answer:

The amount of the company's accounts receivable is $2,558,750.

Explanation:

Accounts Receivables are amounts owed to the company. They are measured at amounts that the company expects to be entitled to after a sale.

The sale journal is :

Debit : Accounts Receivables (5,750 units x $445) $2,558,750

Credit : Sales Revenue (5,750 units x $445)  $2,558,750

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales Costs Depreciation EBIT Taxes (22%) Net income 747,300 582,600 89,300
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
b. Depreciation tax shield

Answers

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

Perez Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 2,200 pagers. Unit-level manufacturing costs are expected to be $32. Sales commissions will be established at $2.20 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($72,000), rent on the manufacturing facility ($62,000), depreciation on the administrative equipment ($15,600), and other fixed administrative expenses ($77,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 6,200 modems and 2,200 pagers). Required a. Determine the per-unit cost of making and selling 2,200 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $46 each, should Perez make the pagers

Answers

Answer and Explanation:

a. The computation of the per unit cost is shown below:

= Manufacturing cost per unit + sales commission per unit

= $32 + $2.20

= $34.20

Here we just add the two cost so that the per unit cost could come

b. Yes it should make the pagers as the cost per unit would be lower than the selling price i.e, $46

Therefore the above should be relevant for the given situation

4. Suppose the spot Yuan/dollar exchange rate is 6.79. Sue, a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset that promises an annual interest of 7 percent. If the expected exchange rate (Yuan/dollar) after a year is 7.2, how much will Sue earn in Yuan

Answers

Answer:

Spot exchange rate (Yaun / Dollar) = 6.79 > Therefore, exchanging Yuan for Dollar:    10,000 Yuan.

Explanation:

Yuan/Dollar existing exchange rate is 6.79           Sue has 10,000 Yuan which is converted to 10,000 / 6.79

Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sales, $458,000 Selling and administrative expenses, $118,000 Sales returns and allowances, $38,000 Gross profit, $498,000 Accounts receivable, $185,000 Sales discounts, $22,000 Allowance for doubtful accounts credit balance, $2,000 Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded

Answers

Answer:

$8,870

Explanation:

Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded

Using this formula

Balance in the allowance for doubtful accounts=

(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance

Let plug in the formula

Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000

Balance in the allowance for doubtful accounts=$6,870+$2,000

Balance in the allowance for doubtful accounts=$8,870

Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $226,445, net annual cash flows $40,500, and present value factor of cash inflows for 10 years is 5.89 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.

Answers

Answer:

Hsung Company

a. The net present value is:

= $12,100.

b. Since the investment could yield a net present value of $12,100, the investment should be made.

Explanation:

a) Data and Calculations:

Cash cost of proposed capital investment = $226,445

Net annual cash inflows = $40,500

Present value factor of cash inflows for 10 years = 5.89 (rounded)

Present value of net annual cash inflows = $238,545 ($40,500 * 5.89)

The net present value of the proposed capital project = Present value of net annual cash inflows minus the initial investment cost

= $12,100 ($238,545 - $226,445)

Answer:

12100

Explanation:

40500*5.89=238545

238545-226445=12100

12100

Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year 1 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1.

Answers

Answer:

Spalding Pointers Corporation

Sales Budget

For the first quarter of year 1.

Details                                     January             February        March  

Sales revenue ($)                   120,000              126,000       132,300

Explanation:

Before preparing the sales budget, the following are calculated first:

Expected sales in January year 1 = $120,000

Expected sales in February year 1 = Expected sales in January year 1 * (100% + Expected percentage increase) = $120,000 * (100% + 5%) = $126,000

Expected sales in March year 1 = Expected sales in February year 1 * (100% + Expected percentage increase) = $126,000 * (100% + 5%) = $132,300

The sales budge will now look as follows:

Spalding Pointers Corporation

Sales Budget

For the first quarter of year 1.

Details                                     January             February        March  

Sales revenue ($)                   120,000              126,000       132,300

Interest rates and decisions
Suppose that a firm is facing an upward-sloping yield curve and needs to borrow money to invest in production. Does this mean that the firm should consider borrowing only at short-term rates?
a. No, the firm needs to take the volatility of short-term rates into account.
b. No, an upward-sloping yield curve means that the firm will get a lower interest rate if it uses long-term financing
c. Yes, using short-term financing will give the firm the lowest possible interest rate over the life of the project.
Credit ratings affect the yields on bonds. Based on the scenario described in the following table, determine whether yields will increase or decrease and whether it will be more expensive or less expensive, as compared to other players in the market, for a company to borrow money from the bond market.
Scenario Impact on Yield Cost of Borrowing Money
from Bond Markets
ABC Real Estate is a commercial real estate firm that primarily uses short-term financing, while its competitors primarily use long-term financing. Interest rates have recently increased dramatically. Decrease More expensive Ziffy Corp.’s credit rating was downgraded from AAA to A. Bellgotts Inc. has increased its market share from 15% to 37% over the last year while maintaining a profit margin greater than the industry average. Previously, Ferro Co. had only used short-term debt financing. The company now finances its current assets such as inventories and receivables with short-term debt, and it finances its fixed assets such as buildings and equipment with long-term debt.

Answers

Answer:

a. No, the firm needs to take the volatility of short-term rates into account.

Explanation:

Short term interest rates are more volatile than the long term interest rates. If the company chooses to finance its operations solely from short term financing than it will need to incorporate the affect of volatility in the short term interest rates to identify the net returns. The volatility should be calculated with the risk factor and required rate of return of the funds.

You are a financial analyst for Loch Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $246,000. The estimated useful life is 10 years, and the estimated residual value is $62,000. The machine has an estimated useful life in productive output of 230,000 units. Actual output was 35,000 in year 1 and 31,000 in year 2.
Required:
For years 1 and 2 only, prepare separate depreciation schedules assuming:
a. Straight-line method.
b. Units-of-production method.
c. Double-declining-balance method.

Answers

Answer:

a. Straight-line method.

depreciable value = $246,000 - $62,000 = $184,000

deprecaition expense per year = $184,000 / 10 = $18,400

year                 depreciation expense              book value

1                         $18,400                                   $227,600

2                        $18,400                                   $209,200

b. Units-of-production method.

depreciable value = $246,000 - $62,000 = $184,000

deprecaition expense per unit = $184,000 / 230,000 = $0.80

year                 depreciation expense              book value

1                         $28,000                                  $218,000

2                        $24,800                                   $193,200

c. Double-declining-balance method.

depreciation expense year 1 = $246,000 x 1/10 x 2 = $49,200

depreciation expense year 2 = $196,800 x 1/10 x 2 = $39,360

year                 depreciation expense              book value

1                         $49,200                                  $196,800

2                        $39,360                                   $157,440

Budgeted amount: 0.5 machine hours per (MH) unit Variable overhead rate is $15 per MH Fixed overhead rate is $40 per MH Budgeted fixed overhead is $600,000 Actual amounts: Variable overhead incurred is $190,000 Fixed overhead incurred is $630,000 MH used is 11,000 Actual output is 20,000 units What is the Fixed Overhead Volume Variance

Answers

Answer:

Fixed overhead volume variance = $200,000 Favorable

Explanation:

The fixed overhead volume variance is the difference between the actual and budgeted production unit multiplied by the standard fixed production overhead cost per unit

                                                                                        Units

Budgeted units                                                              15,000

Actual units                                                                   20,000

Variance                                                                          5,000

Fixed overhead rate per unit                                       × $40

Fixed overhead volume variance                              $200,000

Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $452,000, and direct labor costs to be $2,260,000. Actual overhead costs for the year totaled $419,000, and actual direct labor costs totaled $1,930,000. At year-end, the balance in the Factory Overhead account is a: Multiple Choice $452,000 Credit balance. $386,000 Debit balance. $33,000 Debit balance. $33,000 Credit balance. $419,000 Debit balance.

Answers

Answer:

As overhead was underapplied, the balance in overhead will be $33,000 credit.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 452,000 / 2,260,000

Predetermined manufacturing overhead rate= $0.2 per direct labor dollar

Now, we can allocate costs:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.2*1,930,000

Allocated MOH= $386,000

Finally, we determine the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead=  419,000 - 386,000

Underapplied overhead= $33,000

As overhead was underapplied, the balance in overhead will be $33,000 credit.

Which of the following statements is CORRECT?
a. Suppose you are managing a stock portfolio, and you have information that leads you to believe the stock market is likely to be very strong in the immediate future. That is, you are convinced that the market is about to rise sharply. You should sell your high-beta stocks and buy low-beta stocks in order to take advantage of the expected market move.
b. Collections Inc. is in the business of collecting past-due accounts for other companies, i.e., it is a collection agency. Collections' revenues, profits, and stock price tend to rise during recessions. This suggests that Collections Inc.'s beta should be quite high, say 2.0, because it does so much better than most other companies when the economy is weak.
c. Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period.
d. If the market risk premium remains constant, but the risk-free rate declines, then the required returns on low-beta stocks will rise while those on high-beta stocks will decline.
e. You think that investor sentiment is about to change, and investors are about to become more risk averse. This suggests that you should rebalance your portfolio to include more high-beta stocks

Answers

Answer: C. Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period.

Explanation:

From the options given, the correct option is option C "Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period".

Option A is wrong because when there is information that a particular stock will be strong in the future, one should not sell your high-beta stocks and buy low-beta stocks rather the low best stocks should be sold and high beta stocks should be bought.

Option B is wrong because during recession, collections' revenues, profits, and stock price tend to fall and not rise. During recession, there is decrease in economic growth, unemployment and other negative effects in the economy.

Option D and E are wrong as well as the reverse is the case in both situations. The correct option is C.

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 350 Revenue ($390.00q) $ 136,500 Expenses: Wages and salaries ($11,100 + $120.00q) 53,100 Supplies ($5.00q) 1,750 Equipment rental ($2,500 + $25.00q) 11,250 Insurance ($4,100) 4,100 Miscellaneous ($520 + $1.42q) 1,017 Total expense 71,217 Net operating income $ 65,283 During May, the company’s actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Answers

Answer:

Puget Sound Divers

Puget Sound Divers Planning and Flexible Budgets

For the Month Ended May 31

                                          Planning      Flexible

                                           Budget       Budget

Budgeted diving-hours (q)    350              340

Revenue ($390.00q)     $ 136,500   $132,600

Expenses:

Wages and salaries            53,100        51,900

Supplies ($5.00q)                 1,750           1,700

Equipment rental                11,250         11,000

Insurance ($4,100)               4,100           4,100

Miscellaneous                      1,017           1,003

Total expense                    71,217        69,703

Net operating income $ 65,283     $ 62,897

Explanation:

a) Data and Calculations:

Puget Sound Divers Planning Budget

For the Month Ended May 31

Budgeted diving-hours (q) 350

Revenue ($390.00q)                            $ 136,500

Expenses:

Wages and salaries ($11,100 + $120.00q) 53,100

Supplies ($5.00q)                                         1,750

Equipment rental ($2,500 + $25.00q)      11,250

Insurance ($4,100)                                       4,100

Miscellaneous ($520 + $1.42q)                   1,017

Total expense                                            71,217

Net operating income                         $ 65,283

Flexing the budget with actual activity of 340:

Revenue ($390.00q) $ 136,500/350 * 340 = $132,600

Expenses:

Wages and salaries ($11,100 + $120.00 * 340) = $51,900

Supplies ($5.00q)                                         1,750/350 * 340 = $1,700

Equipment rental ($2,500 + $25.00 * 340 = $11,000

Miscellaneous ($520 + $1.42 * 340 = $1,003

Good interpersonal communication skills can prevent negativity, confusion, conflict and



profitability

an adverse affect to the company's bottom line

low turnover

Answers

Answer:

an adverse effect on the company's bottom line

Explanation:

Given that profitability means the company is making success in terms of sales, and low turnover means, the company is having a lower number of employees leaving the company over a specific period compared to the number of employees recruited.

Therefore, Good interpersonal communication skills can prevent negativity, confusion, conflict and

an adverse effect on the company's bottom line.

According to the standard cost card, each helmet should require 0.52 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?

Answers

Answer:

Please find the complete question in the attached file and its solution can be defined as follows:

Explanation:

The standard kgs permitted[tex]= 3100 \times 0.62 = 1922[/tex]

Current production Standard cost permitted [tex]=1922\times 7= 13454[/tex]

Variance of materials for expenditure [tex]= 13708-13454= 254 \ \ \ U[/tex]

Outlined various of materials [tex]= 13708-(2077\times 7)= 831 \ \ \ F[/tex]

Variability of additional channel [tex]= 7\times (2077-1922)= 1085\ \ \ U[/tex]

TB MC Qu. 10-149 (Algo) ABC Corporation makes a product ... ABC Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.7 grams $ 2.30 per gram Direct labor 0.5 hours $ 23.00 per hour Variable overhead 0.5 hours $ 7.30 per hour The company produced 5,500 units in January using 39,610 grams of direct material and 2,410 direct labor-hours. During the month, the company purchased 44,700 grams of the direct material at $2.00 per gram. The actual direct labor rate was $22.30 per hour and the actual variable overhead rate was $7.10 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 variable overhead rate variance for January is:

Answers

Answer:

Direct labor rate variance= $482 favorable

Explanation:

Giving the following information:

Variable overhead 0.5 hours $ 7.30 per hour

Actual direct labor hours= 2,410

The actual variable overhead rate was $7.10 per hour.

To calculate the variable overhead rate variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Variable manufacturing overhead rate variance=  (7.3 - 7.1)*2,410

Variable manufacturing overhead rate variance=  $482 favorable

two obstacles you may face in your attempt to achieve your goals

Answers

Answer: Perfectionism, Expectations, Distrations, etc.

Explanation:

An act of Procrastinating and viewing of mistakes as failure are obstacles one might face in your attempt to achieve goals.

What is a goals?

A goals refers to a predetermined aim that an entity or group plans to to achieve in a set period of time.

However, some obstacles that one might face in an attempt to achieve your goals includes:

Procrastination: This obstacle delays the act of carrying out an action.Viewing mistakes as failure: This makes people to fear making mistake whereas they should stand as stepping stone for success.

Read more about goals

brainly.com/question/3658939

Break-even sales and sales to realize operating incomeFor the current year ended March 31, Cosgrove Company expects fixed costs of $465,000, a unit variable cost of $62, and a unit selling price of $92.a. Compute the anticipated break-even sales (units).fill in the blank 1 unitsb. Compute the sales (units) required to realize operating income of $108,000.fill in the blank 2 units

Answers

Answer:

Break even point in units=15,500 units

Units to achieve target profit=19,100 units

Explanation:

Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss because the total contribution exactly equals the total fixed costs

Break-even point (in units) is calculated using this formula:  

Break even point in units = Total general fixed cost/ (selling price - Variable cost)

Break even point in units=  $465,000/(92-62)=15,500 units

Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit

Units to achieve target profit of 108,000 = ($465,000+  108,000)/ (92-62)=19,100 units

Break even point in units=15,500 units

Units to achieve target profit=19,100 units

Kyle owned a small business that sold and repaired several styles of bicycles. Last month, Kyle had sales of $15,000 and the costs of operating his business were $12,300.
Which of the following is true about Kyle's business?

The business earned a profit.

The business should focus on expansion.

The business experienced a loss.

The business is not capitalizing on a need

Answers

Answer:

The business earned a profit.

g Jesse Co. reports a taxable and pretax financial loss of $800,000 for 2019. Jesse's taxable and pretax financial income and tax rates for the last two years were: 2017 $800,000 20% 2018 800,000 35% The amount that Jesse should report as an income tax refund receivable in 2019, assuming that it uses the carryback provisions and that the tax rate is 40% in 2019, is

Answers

Answer:

$160,000

Explanation:

Calculation to determine The amount that Jesse should report as an income tax refund receivable in 2019

Using this formula

2019 income tax refund receivable=Taxable and pretax financial income * Tax rate

Let plug in the formula

2019 income tax refund receivable =($800,000 × 20%)

2019 income tax refund receivable= $160,000

Therefore The amount that Jesse should report as an income tax refund receivable in 2019 is $160,000

Problem 8-27A (Static) Computing standard cost and analyzing variances LO 8-5, 8-6 Spiro Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles. Amount of direct materials per candle 1.6 pounds Price of direct materials per pound $ 1.50 Quantity of labor per unit 1 hour Price of direct labor per hour $ 20 /hour Total budgeted fixed overhead $ 390,000 During Year 2, Spiro planned to produce 30,000 drip candles. Production lagged behind expectations, and it actually produced only 24,000 drip candles. At year-end, direct materials purchased and used amounted to 40,000 pounds at a unit price of $1.35 per pound. Direct labor costs were actually $18.75 per hour and 26,400 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $330,000. Overhead is applied to products using a predetermined overhead rate based on estimated units.

Answers

This question asks us to:

a. Determine the standard cost per candle for direct products, direct labor, and overhead.

b. Calculate the total standard cost of one drip candle.

c. Determine the direct materials, direct labor, and overhead actual costs per candle.

d. The total actual cost of each candle

Answer:

Explanation:

a.

Cost                          Computation      Standard cost per unit

Direct material    [tex]\$1.50 \times 1.6[/tex]                     2.4

Direct Labor        [tex]\$20 \times 1[/tex]                           20

Overhead           [tex]\dfrac{\$390,000}{30000}[/tex]                        13

b.

To find the total average standard cost for 1 drip candle

The total standard cost per dip candle = $(2.4+20+13)

=$35.40

c. The actual cost per candle for direct materials, direct labor, and overhead can be computed as:

Cost                          Computation          Standard cost per unit

Direct material    [tex](\dfrac{40000}{24000}\times 1.35)[/tex]                           2.25

Direct Labor         [tex]\dfrac{26400}{24000} \times 18.75[/tex]                          20.63

Overhead            [tex]\dfrac{\$330,000}{24000}[/tex]                                    13.75

d. The total actual cost per candle = $(2.25 + 20.63 + 13.75)

= $36.63

During the month of September, the following transactions occurred. The applicable sales tax rate is 6%.
Sept. 2 Sold merchandise on account to Sam Larson, $1,400, plus sales tax.
7 Sold merchandise on account to David Mitchell, $1,900, plus sales tax.
12 Issued credit memorandum to Sam Larson for $689, including sales tax of $39.
22 Sold merchandise on account to Matt Feustal, $500, plus sales tax.
28 Sold merchandise on account to Ana Cardona, $850, plus sales tax.
Enter the transactions in the general journal.

Answers

Answer:

Sept. 2

Dr Accounts Receivable-Sam Larson 1484

Cr Sales 1400

Cr Sales Tax Payable 84

Sept. 7

Dr Accounts Receivable-David Mitchell 2014

Cr Sales 1900

Cr Sales Tax Payable 114

Sept. 12

Dr Sales Returns and Allowances 650

Dr Sales Tax Payable 39

Cr Accounts Receivable-Sam Larson 689

Sept. 22

Dr Accounts Receivable-Matt Feustal 530

Cr Sales 500

Cr Sales Tax Payable 30

Sept. 28

Dr Accounts Receivable-Ana Cardona 901

Cr Sales 850

Cr Sales Tax Payable 51

Explanation:

Preparation of the general journal entries

Sept. 2

Dr Accounts Receivable-Sam Larson 1484

(1400+84)

Cr Sales 1400

Cr Sales Tax Payable 84

(1400*6%)

Sept. 7

Dr Accounts Receivable-David Mitchell 2014

(1900+114)

Cr Sales 1900

Cr Sales Tax Payable 114

(1900*6%)

Sept. 12

Dr Sales Returns and Allowances 650

(689-39)

Dr Sales Tax Payable 39

Cr Accounts Receivable-Sam Larson 689

Sept. 22

Dr Accounts Receivable-Matt Feustal 530

(500+30)

Cr Sales 500

Cr Sales Tax Payable 30

(500*6%)

Sept. 28

Dr Accounts Receivable-Ana Cardona 901

(850+51)

Cr Sales 850

Cr Sales Tax Payable 51

(850*6%)

Frida makes bread every day and due to demand she is thinking of increasing her bread production. In order to make this decision, she would calculate her marginal costs of bread production (increased number of employees, equipment, etc.) and her marginal benefits (number of loaves sold, price paid, new customers, etc.) and continue to produce where Select the correct answer below:
a. MB b. MB>MC or until they are equal.
c. total benefits equal total costs.
d. the price of bread equals exactly the marginal benefit of each loaf.

Answers

Answer: b. MB > MC or until they are equal.

Explanation:

It is best that Frieda produces bread at the level where Marginal benefits exceeds marginal costs. The difference will keep giving her more profit.

She should keep increasing her production so long as the Marginal benefit exceeds marginal cost but should stop at the level where the Marginal benefit and marginal cost become equal because producing past this point would mean that she would incur a marginal loss on each unit.

Using the attached sheet (or a spreadsheet if you prefer), prepare a classified balance sheet for the ABC, LLC for the year ended December 31, 2020 using the following data.
Accounts Payable 4,000
Accounts Receivable 3,000
Cash 20,000
Common Stock 1,000
Land 25,000
Notes Payable (due in 5 years) 10,000
Paid in Capital in Excess of Par - Common Stock 17,000
Paid in Capital in Excess of Par - Preferred Stock 2,000
Preferred Stock 8,000
Retained Earnings 7,000
Salaries Payable 5,000
Treasury Stock 6,000

Answers

Answer:

ABC, LLC

Classified balance sheet as at December 31, 2020

                                                                                              $

ASSETS

Non - Current Assets

Land                                                                                 25,000

Total Non - Current Assets                                             25,000

Current Assets

Accounts Receivable                                                        3,000

Cash                                                                                 20,000

Total Current Assets                                                       23,000

TOTAL ASSETS                                                               48,000

EQUITY AND LIABILITIES

LIABILITIES

Non - Current Liabilities

Notes Payable (due in 5 years)                                      10,000

Total Non - Current Liabilities                                        10,000

Current Liabilities

Accounts Payable                                                            4,000

Salaries Payable                                                              5,000

Total Current Liabilities                                                   9,000

TOTAL LIABILITIES                                                         19000

EQUITY

Common Stock                                                                1,000

Preferred Stock                                                               8,000

Treasury Stock                                                                6,000

Retained Earnings                                                          7,000

Paid in Capital in Excess of Par - Common Stock       17,000

Paid in Capital in Excess of Par - Preferred Stock       2,000

TOTAL EQUITY                                                              41,000

TOTAL EQUITY AND LIABILITIES                                60,000  

Explanation:

A classified balance sheet shows the Assets, Liability and Equity Balances in their respective categories as shown above.

The total cost of producing q units of a certain product is described by the function C = 4,000,000 + 300q + 0.01q2 where C is the total cost stated in dollars. (1) How many units should be produced in order to minimize the average cost per unit? (2) What is the minimum average cost per unit? (3) What is the total cost of production at this level of output? Make sure to include appropriate units.

Answers

Answer:

(1) 20,000 units should be produced in order to minimize the average cost per unit.

(2) The minimum average cost per unit is $700 per unit.

(3) The total cost of production at this level of output is $14,000,000.

Explanation:

The given total cost function is correctly stated as follows:

C = 4,000,000 + 300q + 0.01q^2 …………………………… (1)

(1) How many units should be produced in order to minimize the average cost per unit?

AC = Average cost per unit = C / q

Substituting for C from equation (1), we have:

AC = (4,000,000 + 300q + 0.01q^2) / q …………………. (2)

Marginal cost can be obtained by taking the derivative of equation (1) as follows:

MC = C’ = 300 + (2 * 0.01)q

MC = 300 + 0.02q …………………………………………. (3)

AC is minimum when MC = AC. Therefore, equate equations (2) and (3) and solve for q as follows:

300 + 0.02q = (4,000,000 + 300q + 0.01q^2) / q

(300 + 0.02q)q = 4,000,000 + 300q + 0.01q^2

300q + 0.02q^2 = 4,000,000 + 300q + 0.01q^2

300q + 0.02q^2 - 300q - 0.01q^2 = 4,000,000

0.01q^2 = 4,000,000

q^2 = 4,000,000 / 0.01

q^2 = 400,000,000

q = 400,000,000^(1/2)

q = 20,000 units

Therefore, 20,000 units should be produced in order to minimize the average cost per unit.

(2) What is the minimum average cost per unit?

Substituting q = 20,000 into equation (2), we have:

AC = (4,000,000 + (300 * 20,000) + (0.01 * 20,000^2)) / 20,000

AC = $700 per unit

Therefore, the minimum average cost per unit is $700 per unit.

(3) What is the total cost of production at this level of output?

Substituting q = 20,000 into equation (1), we have:

C = 4,000,000 + (300 * 20,000) + (0.01 * 20,000^2)

C = $14,000,000

Therefore, the total cost of production at this level of output is $14,000,000.

2. Shell Biotech Corporation is considering two mutually exclusive capital investment projects. Project 1 costs $75,000, and would produce annual cash flows of $16,200 for each of the next 9 years. Project 2 also costs $75,000, but would produce annual cash flows of $14,000 for each of the next 12 years. If Shell's cost of capital is 11%, which alternative should be chosen

Answers

Answer:

Project 2

Explanation:

The better alternative can be determined by calculating the npv

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Project 1

Cash flow in year 0 = $-75,000

Cash flow each year fromyear 1 to 9 = $16,200

I = 11%

NPV = 14,700.17

Project 2

Cash flow in year 0 = $-75,000

Cash flow each year fromyear 1 to 12 = $14,000

I = 11%

NPV = 15,892.99

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

The 2017 and 2016 balance sheets of Rabb Corporation follow. The 2017 income statement is also provided. Rabb had no noncash investing and financing transactions during 2017. During the​ year, the company sold equipment for $15,100​, which had originally cost $13,500 and had a book value of $10,500. The company did not issue any notes payable during the year but did issue common stock for $31,000. The company purchased plant assets and​ long-term investments with cash.
Requirements
1. Prepare the statement of cash flows for RabbRabb Corporation for 20172017 using the indirect method.
2. Evaluate the​ company's cash flows for the year. Discuss each of the categories of cash flows in your response.

Answers

Answer:

I looked for the missing information (IS & BS) since the information was missing

Statement of cash flows

Cash flows from operating activities:

Net income                            $183,500

Adjustments to new income

Depreciation $5,900

Gain on sale of equipment ($4,600)

Increase in accounts receivable ($3,200)

Decrease in inventory $6,500

Increase in prepaid insurance ($700)

Decrease in account payable ($2,600)

Decrease in wages payable ($4,400)

Increase in interest payable $2,100

Increase in taxes payable $5,400

Decrease in accrued expenses payable ($4,000)

Total cash flow provided by operating activities $183,900

Cash flow from investing activities:

Cash provided by sale of equipment $15,100

Cash paid for investments ($117,000)

Cash paid for P, P & E ($27,500)

Total cash flow from investing activities ($129,400)

Cash flow from financing activities:

Cash paid for long term debt ($34,000)

Dividends paid ($22,300)

Common stocks issued $31,000

Total cash flow from financing activities ($25,300)

Net increase in cash $29,200

Beginning cash balance $20,500

Ending cash balance $49,700

The outstanding checks total_________.

1. $158.53
2. $246.53
3. $48.00
4. $914.47

Answers

Answer:

1,367.53

Explanation:

Producer surplus is best defined as _________________. Select the correct answer below: the profit of producers when they make more goods than are demanded the profit of producers when there are too many producers for a certain demand in a market the profit that producers make above the cost of production the intangible profits producers make in addition to the goods they sell

Answers

Answer:

the profit that producers make above the cost of production.

Explanation:

Producer surplus is best defined as the profit that producers make above the cost of production.

Basically, it is the total amount of money that a particular producer of goods and services benefits (gains) from selling at the market price.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Symington Corporation uses the periodic inventory system. At December 31, 20X1, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count: Goods held on consignment at Murphy Corporation $ 23,000 Merchandise shipped to a customer on 12/30/20X1 f.o.b. destination (merchandise arrived at customer's location on 1/3/20X2) 12,000 Merchandise shipped to a customer on 12/29/20X1 f.o.b. shipping point (merchandise arrived at customer's location on 1/2/20X2) 6,000 Merchandise purchased from a supplier, shipped f.o.b. destination on 12/29/20X1, in transit at year-end 24,000
Symington's 2018 ending inventory should be:________

Answers

Answer:

See below

Explanation:

With regards to the above information, Symington's 2018 ending inventory would be computed as seen below;

= Ending inventory balance at December 31, 20X1 + Goods held on consignment at Murphy corporation + Merchandize shipped to customer on 12/30 and arrived at customer' location on 1/3/2017

= $320,000 + $23,000 + $12,000

= $355,000

Therefore, Symington's 2018 ending balance should be $355,000.

Note that other given information are not relevant to the computation of the ending inventory.

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