Answer:
Direct material purchases in May = 21,670× $10= $216,700
Explanation:
Material purchase budget is determined by adding the closing inventory of material to the material usage budget less the opening inventory.
Material budgets for May will be prepared as follows:
Materials needed for May production = 5,500 × 3 = 16,500
Materials needed for June production = 4,400× 3= 13,200
Closing inventory of raw material in May =60% × June requirement = 60% × 13,200 =7,920
Material purchase budget for February = Usage budget + closing inventory - opening inventory
= 16,500 + 7,920- 2,750=21,670
Direct material purchases in May = 21,670× $10= $216,700
On January 1 of this year, Nowell Company issued bonds with a face value of $240,000 and a coupon rate of 6.0 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 6.0%.
1. What was the issue price on January 1 of this year?
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Answer:
1. What was the issue price on January 1 of this year?
since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
interest expense = coupon rate = $7,200 (for both June 30 and December 31)
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
Face value = $240,000
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Face value = $240,000
The issue price is $240,000, interest expenses will be $7,200 each time. the company owes the investor the interest and the book value is $240,000.
What is face value?Face value is the original cost with which the shares are shown/ registered on the stock exchange. It is the amount that the company has to pay to the holder of the bonds in maturity, it is the par value for bonds.
1. The issue price of 6% coupon rate bonds is $240,000.
2. The amount of interest expense that should be recorded on June 30 and December 31
$240,000 X 6%=$14,400annually
but it is paid semi-annually so=$14,400/2= $7,200 for each time
3. The amount owed to the investor by the company will be the interest amount i.e $7,200 each on June 30 and December 31.
4. The book value of the bond will be the face value for which it was issued i.e $240,000.
Therefore the above statements aptly explain the facts.
Learn more about face value here:
https://brainly.com/question/14294215
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 6 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 6.6 percent per year one year from today. If you plan to deposit $18,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit
Answer:
$32,529.54
Explanation:
To determine the answer the difference in future value of the investment options have to be determined
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
First option
$18,000 x (1.06)^40 = $185,142.92
Second option
$18,000 x (1.066)^39 = $217,672.46
Difference in future values = $217,672.46 - $185,142.92 = $32,529.54
During December, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of December, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. rev: 10_05_2019_QC_CS-184681 Multiple Choice $3.70. $2.38. $2.82. $3.12. $4.79.
Answer:
$3 per unit
Explanation:
The computation of the direct materials cost per equivalent unit is shown below:
Completed and transferred to finished goods 65,000 units
Equivalent number of additional units in process 15000 units
Beginning inventory material cost $57,500
Direct material cost incurred $183,000
Total direct material cost $240,500 ($57,500 + $183,000)
ANd, the total units is 80,000 (65,000 + 15,000)
So, the direct material cost per equivalent unit is
= $240,500 ÷ 80,000 units
= $3 per unit
According to the literature on organizational conflict, constructive conflict Question 1 options: tends to produce beneficial outcomes, particularly better decision making. is the main source of conflict in organizations. is the only conflict management style that has high assertiveness and low cooperativeness. is one of the most common outcomes of organizational conflict.
Answer:
tends to produce beneficial outcomes, particularly better decision making.
Explanation:
Constructive conflict occurs when there are problems that need to be solved by a team in the organization, and thus influence people to cooperate with creative and innovative ideas for solving the problem that can help to produce beneficial results, especially better decisions.
Constructive conflict helps the organization to be more productive by aggregating different ideas about the same problem and focusing on the solution to the resolution, which increases the sense of team integration, participation and understanding of different alternatives that will be improved so that the organization has the best decision making for such a problem.
As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative to Macedonian dinars. The depreciation in the U.S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U.S. dollar.
a. A. Todd, American, to visit Macedonia spring brew
b. An investment bank in Macedonia that is interested in purchasing U.S.
c. Goodyear, a U.S. based firm, selling car tires Macedonia
d. A family from Macedonia visiting relatives in the U.S
e. A firm from Macedonia selling in the US.
f. U .S. based Hewlett-Packard, which is a tech purchasing a high tech company in Macedonia
Answer:
A. Todd, American, to visit Macedonia spring brew
Explanation:
Todd is a loser due to the depreciation of the U.S. dollar because now he will need more dollars to buy a comparative amount of South Korea won. His trip will now be more expensive.
An investment bank in South Korea, interested in purchasing U.S. government bonds - winner
The investment bank will exchange fewer wons for U.S. dollars than before. Buying government bonds will now be cheaper for them.
Goodyear, a firm based in the United States, sells car tires in South Korea - winner
Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper since the value of the dollar has depreciated against the currency that they hold.
A family from South Korea visits relatives in the United States - winner
The South Korean family will exchange fewer wons for more U.S. dollars, making their trip cheaper.
A firm from South Korea sells handbags in the United States - loser
The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.
An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser
The cost of the high-tech South Korean company is now higher for the American manufacturer because more dollars had to be exchanged for wons before the purchase.
why do private and public sector cannot br looked up as two separate entities
Answer:
The private sector and the public sector cannot be viewed as separate entities because the two of them are closely intertwined.
Explanation:
The public sector defines the rules and conditions under which the private sector develops, and the private sector contributes to the finances of the private sector.
For example, a regulatory agency in an economic sector sets the rules of the mining economic sector in a country, and private mining companies abide by these rules in order to develop their business activity. Part of the revenue earned from these business activities are taken as taxes by the public sector, in order to finance the regulatory agency.
Sometimes, the public sector can also consists in public companies that can work together with private firms in common projects.
All of the following are examples of federal government programs available to families in need
except:
A. public housing
B. special housing for nuclear families.
C. emergency shelter grants for the homeless.
D. special housing for aging adults.
Answer:
I think the answer is B. No guarantees.
Explanation:
Exercise 13-07 Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 770 $ 69 Accounts receivable (net) 1,950 1,880 Inventory 810 860 Other current assets 590 331 Total current assets $4,120 $3,140 Total current liabilities $2,030 $1,640 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year.
Answer: See explanation
Explanation:
1. Current Ratio = Current Assets / Current Liabilities
= $4,120 / $2030
= 2.03
2. Accounts receivable Turnover:
= Net Credit Sales / Average Accounts Receivables
= 8,258 / (1950+1880 / 2)
= 8258 / 1915
= 4.31
3. Average Collection Period
= 365 / Account Receivable Turnover
= 365 / 4.31
= 84.69 Days
4. Inventory Turnover:
= Cost of Goods Sold / Average Inventory
= 5328 / (810+860 / 2)
= 5328 / 835
= 6.38 times
5. Days in Inventory:
= 365 / Inventory Turnover Ratio
= 365 / 6.38
= 57.21 Days
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $240,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $252,000 cash from accounts receivable. Paid $225,000 on accounts payable. Paid $54,000 of salaries expense for the year. Paid other operating expenses of $43,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule:______.
Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance
Current $ 32,400 0.01
0−30 13,500 0.05
31−60 2,700 0.10
61−90 2,700 0.20
Over 90 days 2,700 0.50
a. Record the above transactions in general journal form and post to T-accounts.
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Roth Inc. for Year 1.
Answer:
Roth Inc.
a. General Journal Debit Credit
1. Cash $80,000
Common stock $80,000
To record issuance of common stock for cash.
2. Inventory $240,000
Accounts payable $240,000
To record the purchase of goods on account.
3. Cost of goods sold $154,000
Inventory $154,000
To record the cost of goods sold.
3. Accounts receivable $306,000
Sales revenue $306,000
To record the sale of goods on account.
4. Cash $252,000
Accounts receivable $252,000
To record the receipt of cash on account.
5. Accounts payable $225,000
Cash $225,000
To record the payment of cash on account.
6. Salaries expense $54,000
Cash $54,000
To record the payment of salaries.
7. Operating expenses $43,000
Cash $43,000
To record the payment of other operating expenses.
8. Bad Debts Expense $3,159
Allowance for Doubtful Accounts $3,159
To record bad debts expense for the year.
T-accounts:
Cash
Account Titles Debit Credit
Common stock $80,000
Accounts receivable $252,000
Accounts payable $225,000
Salaries expense 54,000
Operating expenses 43,000
Balance 10,000
Accounts receivable
Account Titles Debit Credit
Sales revenue $306,000
Cash $252,000
Balance 54,000
Inventory
Account Titles Debit Credit
Accounts payable $240,000
Cost of goods sold $154,000
Balance 86,000
Accounts payable
Account Titles Debit Credit
Inventory $240,000
Cash $225,000
Balance 15,000
Common stock
Account Titles Debit Credit
Cash $80,000
Sales revenue
Account Titles Debit Credit
Accounts receivable $306,000
Cost of goods sold
Account Titles Debit Credit
Inventory $154,000
Salaries expense
Account Titles Debit Credit
Cash $54,000
Operating expenses
Account Titles Debit Credit
Cash $43,000
Bad Debts Expense
Account Titles Debit Credit
Allowance for
Doubtful Accounts $3,159
Allowance for Doubtful Accounts
Account Titles Debit Credit
Bad Debts Expense $3,159
b. Income Statement for the year 1 ended December 31:
Sales revenue $306,000
Cost of goods sold 154,000
Gross profit $152,000
Expenses:
Salaries expense 54,000
Operating expense 43,000
Bad debts expense 3,159 $100,159
Net operating income $51,841
Statement of changes in stockholders' equity:
Common Stock $80,000
Net operating income 51,841
Total Equity $131,841
Balance Sheet as of December 31:
Assets:
Cash $10,000
Accounts receivable 54,000
Allowance for
doubtful accounts 3,159 50,841
Inventory 86,000
Total assets $146,841
Liabilities and Equity:
Accounts payable $15,000
Equity $131,841
Total liabilities and equity $146,841
Statement of Cash Flows for the year 1 ended December 31:
Operating activities:
Net operating income $51,841
Add non-cash expense 3,159
Working-capital:
Accounts receivable -54,000
Inventory -86,000
Accounts payable 15,000
Net operating cash flow $(70,000)
Financing activities:
Common stock $80,000
Net cash flows $10,000
Reconciliation:
Ending cash balance $10,000
Beginning cash balance 0
Increase in net cash flows $10,000
Explanation:
a) Data and Transaction Analysis:
1. Cash $80,000 Common stock $80,000
2. Inventory $240,000 Accounts payable $240,000
3. Cost of goods sold $154,000 Inventory $154,000
3. Accounts receivable $306,000 Sales revenue $306,000
4. Cash $252,000 Accounts receivable $252,000
5. Accounts payable $225,000 Cash $225,000
6. Salaries expense $54,000 Cash $54,000
7. Operating expenses $43,000 Cash $43,000
8. Bad Debts Expense $3,159 Allowance for Doubtful Accounts $3,159
Aging of Accounts Receivable:
Number of Days Amount Percent Likely to Allowance
Past Due Be Uncollectible Balance
Current $ 32,400 0.01 $324
0−30 13,500 0.05 675
31−60 2,700 0.10 270
61−90 2,700 0.20 540
Over 90 days 2,700 0.50 1,350
Total $54,000 $3,159
Trial balance
Cash $10,000
Accounts receivable 54,000
Allowance for doubtful accounts $3,159
Inventory 86,000
Accounts payable 15,000
Common stock 80,000
Sales revenue 306,000
Cost of goods sold 154,000
Salaries expense 54,000
Operating expense 43,000
Bad debts expense 3,159
Totals $404,159 $404,159
Based on the readings: match the following business example with its associated product cost term A businessowner pays for rent and equipment at their office An airline considers the costs of serving food and beverages to its passengers A company considers the costs it pays to its employees A clothing manufacturer buys new machines for its factory A. variable costs B. fixed costs C. fixed cost D. variable costs
Answer:
A business owner pays for rent and equipment at their office ⇒ FIXED COSTs since the amount of rent paid should be the same year after year
An airline considers the costs of serving food and beverages to its passengers ⇒ VARIABLE COSTS since the cost of serving food will increase as the number of passengers increase, or will decrease if the number of passengers decrease
A company considers the costs it pays to its employees ⇒ VARIABLE COSTS since the number of employee can vary and the number of hours worked can also vary
A clothing manufacturer buys new machines for its factory ⇒ FIXED COSTS since the machines are depreciated at a predetermined rate that doesn't depend on the factory's output
A key difference between the APV, WACC, and FTE approaches to valuation is: how debt effects are considered; i.e. the target debt to value ratio and the level of debt. how the initial investment is treated. how the ratio of equity to debt is determined. how the unlevered cash flows are calculated. whether terminal values are included or not.
Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.
Explanation:
The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.
Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.
If an adjusting entry is not made for an accrued expense,
a. expenses will be overstated,
b. liabilities will be understated.
c. net income will be understated.
d. equity will be understated.
Answer:
c. net income will be understated.
The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. prepaid insurance bonds payable
Item Classification
1. Current portion of long-term debt.
2. Notes payable (due in 6 to 11 months).
3. Sales taxes payable.
4. Bonus payable (to be paid in 60 days)
5. Warranty liability (6 months of coverage)
6. Prepaid Insurance (6 months of coverage)
7. Notes payable (due in 120 days).
8. Salaries payable.
9. Pension liability (to be fully paid to retired employees in next 11 months)
10. Bonds payable (due in 2 years)
Answer:
L LcnncnlnI think so buh I’d advice u to make it its correct
Mature birds are better than young birds when used for ___.
Answer:
what the question choices?
Partially correct answer. Your answer is partially correct. Try again. On January 10, 2019, Sheffield Corp. sold merchandise on account to Concord Co. for $21,600, n/30. On February 9, Concord Co. gave Sheffield Corp. a 12% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) (
Answer:
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
Explanation:
Preparation of the journal entry to record the sale and the settlement of the account receivable
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
(Being to record Sales revenue)
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
(Being to record settlement of the account receivable)
Bonita Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.
1. January cash receipts recorded in the December cash book consisting of:
Cash sales $28,000
Collections on account, for which $360 of cash discounts were given 17,640
$45,640
2. January cash disbursements recorded in the December check
register liquidated accounts $22,450
Discounts taken 250
3. The ledger has not been closed for 2017.
4. The amount shown as inventory was determined by physical count on December 31, 2017.
The company uses the periodic method of inventory.
Instructions
(A) Prepare any entries you consider necessary to correct Francis’s accounts at December 31.
(B) To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? Assume that the balance sheet that was prepared by the company showed the following amounts:
Debit Credit
Cash $39,000
Accounts receivable 42,000
Inventory 67,000
Accounts payable $45,000
Other current liabilities 14,200
Answer:
Bonita Equipment Co.
A. Entries to correct Bonita's accounts at December 31:
Debit Sales revenue $28,000
Credit Cash $28,000
To reverse the cash sales of January recorded in December.
Debit Accounts Receivable $18,000
Credit Cash $17,640
Credit Cash Discounts $360
To reverse the cash receipts of January recorded in December.
Debit Cash $22,450
Debit Cash Discounts $250
Credit Accounts Payable $22,700
To reverse the cash payment of January recorded in December.
B. To some extent, Bonita was able to show a more favorable balance sheet at December 31 by holding its cash book open. This becomes more pronounced when the working capital elements of the balance sheet are analyzed with ratios.
For example, the current and quick ratios before the above adjustments shows 2.4 and 1.4 respectively. After the adjustments, the current and quick ratios reduced to 1.74 and 0.92 respectively.
Explanation:
a) Data and Analysis:
Cash Sales $28,000
Collections on account $17,640
Total $45,640
Cash Discounts on collections = $360
Total collections on account $18,000
Cash Disbursements:
Check for payment on account = $22,450
Discounts $250
Total disbursement $22,700
Sales revenue $28,000
Cash $28,000
Accounts Receivable $18,000
Cash $17,640
Cash Discounts $360
Cash $22,450
Cash Discounts $250
Accounts Payable $22,700
Before Adjustments After Adjustments
Debit Credit Debit Credit
Cash $39,000 $15,450($39,000 - $28,000 - $18,000 + $22,450)
Accounts receivable 42,000 60,000 ($42,000 + $18,000)
Inventory 67,000 67,000
Accounts payable $45,000 $67,450 ($45,000 + $22,450)
Other current liabilities 14,200 14,200
Total $148,000 $59,200 $142,450 $81,650
Working capital ratios:
Before Adjustments After Adjustments
Current ratio = $148,000/$59,200 $142,450/$81,650
= 2.5 1.74
Quick ratio = $81,000/$59,200 $75,450/$81,650
= 1.4 0.92
Dess Inc., a manufacturing company, has provided the following data for the month of August. The balance in the Work in Process inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. During the month, the used direct material cost was $63,000, and direct labor cost was $39,000. The manufacturing overhead cost was $43,000.
1. The manufacturing costs for August was:
A. $59,000
B. $67,000
C. $145,000
D. $133,000
2. The cost of goods manufactured for August was:
A. $133,000
B. $142,000
C. $145,000
D. $130,000
Answer:
See below
Explanation:
1. Manufacturing cost. This is computed as
= Direct materials + Direct labor + Manufacturing overhead
= $63,000 + $39,000 + $43,000
= $145,000
2. Cost of goods manufactured. This is computed as;
= Beginning WIP + Direct materials + Direct labor + Allocated manufacturing overhead - Ending WIP
= $10,000 + $63,000 + $39,000 + $43,000 - $22,000
= $133,000
Why is a bank more likely to offer you credit if you have a co-singer with good credit?
Answer:
They can see that you have had a good credit record and they will be more likely to offer you credit.
:)
Explanation:
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory? A. Employees have to be reprimanded for bad ideas. B. Employees are self-motivated in their work. C. Employees need constant supervision. D. Employees are always ready to leave the company.
Answer:
b
Explanation:
Employees are self-motivated in their work.
5
5
Learning Task 4 Create a poster advertisement that demonstrates road
hely. Use a white cortolina for this project-based output
er
Guide for critiquing the poster advertisement.
Assessment Citteria
Information on road safety is shown
Measures to prevent rood accident is highlighted
Pictures or illustrations used are appropriate for the content.
Teds casy to read and understand
Execfon is neat and clear
Reglember that the two different forces discussed in this lesson are
Gravity is a force of attraction of two bodies because of their masses,
Friction is a force that opposes movement. It is always opposite to the
direction of the motion
Answer:
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Tolbotics Inc. is considering a three-year project that will require an initial investment of $44,000. If market demand is strong, Tolbotics Inc. thinks that the project will generate cash flows of $29,500 per year. However, if market demand is weak, the company believes that the project will generate cash flows of only $2,000 per year. The company thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak.
If the company uses a project cost of capital of 14%, what will be the expected net present value (NPV) of this project if the company is ignoring the timing option?
a. -$3,435
b. -$3,779
c. -$3,092
d. -$3,607
Answer:
Expected value NPV =$-,7434
Explanation:
The Expected Net present value (NPV) is the difference between the Present value (PV) of Expected value cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.
Expected value NPV = PV of expected value cash inflow - PV of cash outflow
Present value of cash inflow:
The expected cash in flows is the sum of the cash inflows multiplied by their respective probabilities. For Tolbotics it is calculated as follows:
Expected cash inflows=m (29,500× 0.5) + (2,000× 0.5)=15,750
NPV = 15,750× (1-1.14^(-3)/0.14) - 44,000=-7434.
Expected value NPV =$-7,434
Sexton, Corp., has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 860 $ 940 $ 900 $ 1,000 Sales in the year following this one are projected to be 15 percent greater in each quarter. a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period.
Answer:
Q1 Q2 Q3 Q4
a. Payment of accounts ($) 258.00 282.00 270.00 300.00
b. Payment of accounts ($) 258.00 282.00 270.00 300.00
c. Payment of accounts ($) 258.00 282.00 270.00 300.00
Explanation:
Given:
Q1 Q2 Q3 Q4
Sales ($) 860 940 900 1,000
Therefore, we have:
a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
This is done as follows:
Q1 Q2 Q3 Q4
Order (30% of Sales) ($) 258.00 282.00 270.00 300.00
Payment of accounts ($) 258.00 282.00 270.00 300.00
b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
A 90-day payables period implies that the payment has be made within the next 90 days or within one quarter or the same quarter. Therefore, we have:
Q1 Q2 Q3 Q4
Order (30% of Sales) ($) 258.00 282.00 270.00 300.00
Payment of accounts ($) 258.00 282.00 270.00 300.00
c. Calculate payments to suppliers assuming a 60-day payables period.
A 60-day payables period implies the payment for the Order in each of the quarters has to be made in the same quarter.
Therefore, we have:
Q1 Q2 Q3 Q4
Order (30% of Sales) ($) 258.00 282.00 270.00 300.00
Payment of accounts ($) 258.00 282.00 270.00 300.00
Note:
It can be observed that the answer look the same for all the questions.
Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($17,500) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $120,000 of salary, $10,500 of long-term capital gains, $3,500 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?
Answer: $8,000
Explanation:
A special rule allows Michelle to classify up to $25,000 as losses against her nonpassive income.
If Michelle's modified adjusted gross income (MAGI) exceeds $100,000 however, the amount that exceeds the $100,000 will be reduced by 50% and deducted from the exemption allowed.
Loss deduction = Exemption allowed - [(Nonpassive income - MAGI limit) * 50%)
= 25,000 - [ (120,000 + 10,500 + 3,500 - 100,000) * 50%]
= $8,000
You have decided to start a lawn service business to help pay your tuition so that you can complete your undergraduate accounting degree. You plan to provide various lawn maintenance services that will include lawn mowing services, aeration and fertilization. You and two of your friends have agreed to work for you in this new business endeavor. Which of the following would best describe organizing for your new business?
A. Preparing monthly billing statements for clients.
B. Determining the types of lawn services that you will provide for clients.
C. Providing employees with the authority to make decisions regarding a client.
D. Hiring and training new employees.
Answer:
B. Determining the types of lawn services that you will provide for clients.
Explanation:
As can be seen in the question above, you have decided to open a gardening business. However, as we know, gardening is very broad and many services can be associated with it. In order not to leave your business disorganized and to define the service you are offering, you have organized your business by determining the types of lawn services that your business offers, such as lawn mowing, aeration and fertilization.
Why is compound interest preferable to simple interest?
Compound interest pays at least double the interest on the principal
Compound interest is paid by the week or by the month, not only on
O Compound interest is based on the entire principal, not just a percer
O Compound interest pays interest on the principal and the interest ea
Answer:
Compound Interest, when it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate. Compound interest comes into play when you're calculating the annual percentage yield.
Explanation:
I hope this helped a lot bro. Hope you make a 100 on your test or quiz. Can I get brainiest.
Answer:
D.) Compound interest pays interest both on the principal and the interest earned in each period.
Explanation:
On Edg
Rizzo Company has debentures ($1,000 par) outstanding that are convertible into the company's common stock at a price of $25. The convertibles have a coupon interest rate of 8% and mature in 12 years. In addition, the convertible debenture is callable at 110% of the par value. Straight debt of equivalent risk is yielding 12%. The company's common stock is selling at $22 per share. The company has a marginal tax rate of 40%. Determine the conversion value of the issue
Answer:
A. $880
B. -$752.23
Explanation:
Calculation to determine the conversion value of the issue
First step is to calculate the Conversion ratio using this formula
Conversion ratio=Per value of security/ Conversion price
Let plug in the formula
Conversion ratio=$1,000/$25
Conversion ratio=40
Now let determine the Conversion value using this formula
Conversion value =Conversion ratio*Conversion price
Let plug in the formula
Conversion value=40*$22 per share
Conversion value=$880
Therefore the conversion value of the issue is $880
B. Calculation to determine the Straight bond value of the issue
Using financial calculator to the Present Value (PV)
PMT=8%*1,000=80
N=12 years
1/Y=12%
FV=1,000
PV=-$752.23
Therefore the Straight bond value of the issue is -$752.23
Patricia purchased a home on January 1, 2017 for $1,420,000 by making a down payment of $100,000 and financing the remaining $1,320,000 with a 30-year loan, secured by the residence, at 6 percent. During year 2017 and 2018, Patricia made interest-only payments on the loan of $79,200. What amount of the $79,200 interest expense Patricia paid during 2018 may she deduct as an itemized deduction
Answer: $60,000
Explanation:
The maximum amount deductible is based on a mortgage of $1,000,000 and the interest rate of the mortgage being paid.
Interest on $1,000,000 at 6% is:
= 6% * 1,000,000
= $60,000
Only $60,000 of the $79,200 may be deducted.
Ivanhoe Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $383500 ($584000), purchases during the current year at cost (retail) were $3208000 ($4993600), freight-in on these purchases totaled $149500, sales during the current year totaled $4466000, and net markups were $404000. What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.
Answer:
$962406
Explanation:
Calculation to determine the ending inventory value at cost
Ending inventory value at cost=
($584000 + $4993600 + $404000 - $4466000)
*[($383500 + $3208000 + $149500) ÷ ($584000 + $4993600 + $404000)]
Ending inventory value at cost=$1,515,600*($3,741,000÷$5,891,600)
Ending inventory value at cost=$1,515,600*0.635
Ending inventory value at cost=$962406
Therefore the ending inventory value at cost is $962406
Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $475,000 Raw materials (all direct) requisitioned for use in production $476,000 Direct labor cost $640,000 Manufacturing overhead: Indirect labor cost $174,000 Other manufacturing overhead costs incurred $498,000 Cost of goods manufactured $1,469,000 Cost of goods sold (unadjusted) $1,430,000 6. The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:
Answer:
It is the Cost of Goods Manufactured that should be transferred to the Finished Goods account. As both of them are asset account, adding to the Finished Goods account would debit it and taking from the Work in Process account would credit it.
Date Account Title Debit Credit
XX-XX-XXX Finished Goods $1,469,000
Work in Process $1,469,000
Smith and Sons, Inc. Income Statement (in millions)
2016 2015
Net sales 10,300 9,800
Cost of goods sold (5,500) (5,200)
Gross profit 4,800 4,600
Selling and administrative expenses (2,800) (2,700)
Income from operations 2,000 1,900
Interest expense (300) (250)
Income before income taxes 1,700 1,650
Income tax expense (420) (400)
Net income 1,280 1,250
Smith and Sons, Inc. Balance Sheet
Assets
Current assets
Cash and cash equivalents 450 650
Accounts receivable 900 800
Inventory 750 900
Other current assets 400 250
Total current assets 2,500 2,600
Property, plant & equipment, net 2,350 2,250
Other assets 5,700 5,900
Total Assets 10,550 10,750
Liabilities and Stockholders' Equity
Current liabilities 3,250 3,150
Long-term liabilities 5,000 5,400
Total liabilities 8,250 8,550
Stockholders' equity-common 2,300 2,200
Total Liabilities and Stockholders' Equity 10,550 10,750
Required:
Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016.
Answer:
2015 Quick Ratio 0.54
2016 Quick Ratio 0.54
Explanation:
Calculation to determine the quick ratio for Smith & Sons, Inc., for 2015 and 2016
Using this formula
Quick Ratio = Quick assets/Current liabilities
Let plug in the formula
2015 Quick Ratio = (2,600-900)/3150
2015 Quick Ratio= 0.54
2016 Quick Ratio = (2500-750)/3,250
2016 Quick Ratio = 0.54
Therefore the quick ratio for Smith & Sons, Inc., for 2015 is 0.54 and 2016 is 0.54