Answer:
1999 Merger of Exxon and Mobil
The reason that made the U.S. government to require Exxon and Mobil to divest themselves of so many gas stations in localized parts of the country to be willing to allow the merger to occur is:
c. To ensure competition in these regions and protect consumers from unwarranted price increases.
Explanation:
The agreement to sell so many gas stations in localized parts of the country was to forestall antitrust lawsuits. It was also made to protect consumers from unwarranted price increases, allowing more competition in the affected areas, where ExxonMobil owed too many gas stations.
The reason why the US would require these two companies to divest themselves is because to ensure competition in these regions and protect consumers from unwarranted price increases.
The answer to this question is option c. Sometimes when two companies merge into one, they could become too powerful. When this is the case, they may end up driving out all their competitors from the market.
At this point, a monopoly may arise from the companies. When a monopoly arises, they would be able to set the price to any amount that they want. This divest option by the government was to ensure the protection of consumers from a situation of price hikes.
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For each of the following, identify whether the transaction results in a DTA, DTL, or permanent difference. Group of answer choices Expenses incurred in obtaining tax exempt income [ Choose ] Estimated warranty costs accrued. [ Choose ] Excess of tax depreciation (MACRS) over straight line depreciation expense. [ Choose ] Rent prepaid by a lessee. [ Choose ] Unearned revenue. [ Choose ]
Jeff installs a new dial-up connection to access home Internet. What device should he buy to connect his system to the Internet?
A.
browser
B.
router
C.
antenna
D.
firewall
E.
modem
Answer:modem
Explanation:
Answer: E. Modem
Explanation: I took the test on plato, and also Dial-up access uses a modem to connect to the internet through a phone line. This connection does not require any additional infrastructure other than a modem.
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 230,000 pesos that is sold on January 17, 2018, for 267,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:
November 1, 2017 $0.20
December 31, 2017 0.65
January 17, 2018 0.66
January 31, 2018 0.67
1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
a. $120,600.
b. $115,200.
c. $117,000.
d. $118,800.
2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
a. $115,200.
b. $118,800.
c. $120,600.
d. $117,000.
Answer:
1. $46,000
2.$46,000
Explanation:
According to the scenario, computation of the given data are as follows,
Inventory price = 230,000 pesos
1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017
= 230,000 × $0.20
= $46,000
2. Consolidated statement cost of goods sold for the year ending December 31, 2018 = Inventory price × Rate on November 1, 2017
= 230,000 × $0.20
= $46,000
The Wiz Co. owes $60 to its bondholders for the payment of principal and interest. The company expects to have a cash flow of $136 if the economy continues as it is but that cash flow will decrease to $54 if the economy enters a recession. Should the company ever face the real possibility of bankruptcy, it will incur legal and other fees of $30. What amount will the bondholders be paid in the case of a recession
Answer:
$24
Explanation:
Cashflow If economy as it is = $136
Cashflow if economy in recession = $54
In the event that the company goes bankrupt due to the recession, it will have to pay $30 in legal and other costs, so the company will set aside $30.
So, Bondholders payment = Cashflow in recession - legal & other cost
= $54 - $30
= $24
Hence, the bondholders will be paid $24 in the case of a recession.
A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that cost $6 per unit to manufacture. The units can be sold as is for $2.00 each, or they can be reworked for $4.50 each and then sold for the full price of $8.50 each. If the units are sold as is, the company will be able to build 22,000 replacement units at a cost of $6 each, and sell them at the full price of $8.50 each.
What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Deductible amounts should be indicated with a minus sign.)
Sell as scrap Rework
Sales of scrap units
Sales of reworked units
Cost to rework units
Opportunity cost of not making new units
Incremental income (loss) $0 $0
The company should:
Answer: See explanation
Explanation:
Sell as scrap:
Sales of scrap units:
= 22000 × $2.00
= $44,000
Rework:
Sale of reworked unit = 22000 × $8.50 = $187,000
- Cost to rework unit = 22000 × $4.50 = $99,000
- Opportunity cost of not making new unit = 22000 × ($8.50 - $6) = $45000
Incremental income(loss) = $33000
Since the incremental Income from scrap is more than reworking, then it implies that the company should sell as scrap.
Answer:
A. Sales as scrap $44,000
Rework $33,000
B. The company should sell as scrap
Explanation:
A. Calculation to determine the incremental income from selling the units as scrap and reworking and selling the units
SALES AS SCRAP REWORK
Sales of scrap units $44,000 $0
( 22000 × $2.00)
Sale of reworked unit $0 $187,000
( 22000 × $8.50 )
Less Cost to rework unit $0 ($99,000)
(22000 × $4.50)
Less Opportunity cost of not making new unit
$0 ($55,000)
[22000 × ($8.50 - $6)]
Incremental income(loss) $44,000 $33,000
Therefore the incremental income from selling the units as scrap is $44,000 and reworking and selling the units is $33,000
B. Based on the above calculation the company should sell as SCRAP because the incremental income of SALES AS SCRAP is higher than that of rework.
Are female expatriates different?.
Answer:
Explanation: Selmer and Leung (2003c) found that female expatriates have the same general adjustment as male expatriates, but with higher levels of work adjustment and better interaction adjustment. A replication study by Haslberger (2010) confirms that the adjustment patterns of male and female expatriates are different.
Answer:
yes the patterns of male and female expatriates are different
The board of directors of Swifty Corporation declared a cash dividend of $2.75 per share on 40000 shares of common stock on July 15, 2020. The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020. The effects of the journal entry to record the payment of the dividend on August 15, 2020, are to increase stockholders’ equity and decrease assets. decrease liabilities and decrease assets. increase stockholders’ equity and increase liabilities. decrease stockholders’ equity and decrease liabilities.
Answer:
a. Decrease liabilities and decrease assets
Explanation:
First option "Decrease liabilities and decrease assets" is the correct option as far as only payment part of Journal entry is concerned.
Since Dividend is declared on 15 July on That date entry would have been:
Shareholder's Equity........Dr
To Dividend Payable(Liability) A/c......Cr
Then, on Payment date i.e. 15 august entry would be:
Dividend Payable(Liability)A/c.......Dr
To cash/Bank A/c..........Cr
Therefore, Liability is Decrease also asset is decreased on 15th August, 2020.
The following facts relate to Coronado Corporation.
1. Deferred tax liability, January 1, 2020, $20,200.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $95,950.
4. Pretax financial income for 2020, $202,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $242,400.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $35,350.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.
Compute income taxes payable for 2020:
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer: See explanation
Explanation:
a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
Debit Income Tax Expense $40400
Debit Defered Tax Asset $7070
Credit Income Tax Payable $19190
Credit Defered tax liability $28280
(To record income tax expense and defered tax/liability).
Note that:
Income Tax Expense was gotten as:
= $202,000 × 20%
= $202000 × 0.2
= $40,4000
Income Tax Payable was gotten as:
= $95,950 × 20%
= $95950 × 0.2
= $19,190
2. Prepare the income tax expense section of the income statement for 2020.
Income statement for year ended 31 December 2020
Income before tax = $202000
Less: Income Tax expense - Current = $19190
Less: Income Tax expense - Defered = $21210
Net income = $161600
Exercise 11-15 Dropping or Retaining a Segment [LO11-2] Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassines Kataskeves, S.A. Income Statement—Bilge Pump For the Quarter Ended March 31 Sales $ 850,000 Variable expenses: Variable manufacturing expenses $ 330,000 Sales commissions 42,000 Shipping 18,000 Total variable expenses 390,000 Contribution margin 460,000 Fixed expenses: Advertising (for the bilge pump product line) 270,000 Depreciation of equipment (no resale value) 80,000 General factory overhead 105,000 * Salary of product-line manager 32,000 Insurance on inventories 8,000 Purchasing department 45,000 † Total fixed expenses 540,000 Net operating loss $ (80,000 ) *Common costs allocated on the basis of machine-hours. †Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company’s total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?
Answer:
-$150,000
Explanation:
Calculation to determine the financial advantage (disadvantage) of discontinuing the bilge pump product line
First step is to calculate the fixed expense
Using this formula
Fixed expense
= Advertising (for the bilge pump product line) + Salary of product-line manager + Insurance on inventories
Let plug in the formula
Fixed expense= 270,000 + 32,000 + $8,000
Fixed expense= $310,000
Now let calculate the financial advantage (disadvantage)
Using this formula
Financial advantage (disadvantage) = Fixed expense-Contribution margin
Let plug in the formula
Financial advantage (disadvantage) = $310,000-460,000
Financial advantage (disadvantage) = -$150,000
Therefore the financial advantage (disadvantage) of discontinuing the bilge pump product line is -$150,000
g Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,687,000 $2,632,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 90,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable
Answer:
a) EPS
2005 Earnings per share=$18.3
2005 Earnings per share=$21.6
b) EPS Variance = $3.3 favorable
Explanation:
Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Earnings per share = (Net income after tax - preference dividend)/Number of shares
2005 Earnings per share = $1,687,000- $40,000/90,000 shares=$18.3
2006 Earnings per share=($2,632,000- $40,000)/120,000 shares=$21.6
2005 Earnings per share=$18.3
2006 Earnings per share=$21.6
EPS Variance
Comparing the EPS the Earning per share in 2006 is higher than that of 2005. Hence, the variance = 21.6-18.3= $3.3 favorable
EPS Variance = $3.3 favorable
a vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units
Making the engine in-house would be more practical for the corporation than purchasing one from the market. To boost output while maintaining product quality.
What is the cost per unit?
The phrase “cost per unit” refers to the lowest price a corporation must sell a product for in order to break even.
Fixed factory overhead (24×150%) Fixed factory (25% Of 36)
For the purpose of making decisions, this overhead shall not be taken into account as 75% of the fixed overhead cost.
The unit can be purchased from the market for $60. Accordingly, the corporation should produce the engine rather than purchase it from the market because it is more practical for the business.
Company maintains the brand name, increase production and maintain quality of product.
Solving data attach on file.
Hence, the significance of the manufacturing is aforementioned.
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Which of the following is not a way of creating agency in California?
Answer:
Note that in California, there are THREE ways to create agency: by agreement, by ratification, and by estoppel.
Explanation:
1. Written or expressed - An oral or written contract in which the parties state the contract's terms and express their intentions in words. We agree orally to the terms of our agency relationship, wherein you will hire me to market your property or represent you as a buyer's agent.
2. Implied - A contract under which the agreement of the parties is demonstrated by their acts and conduct. Example: "I'll help you buy a house; so don't work with anyone else because I will be your agent. Let's go look at some houses today."
3. Ostensible Agency - An actual agency relationship that arises by the actions of the parties rather than by express agreement. For example, the owner of a property knows a broker is showing the owner's vacant lot to prospective buyers without authority to do so. Unless the owner takes steps to stop such unauthorized showings, the law considers that third parties have a just cause to believe the broker to be the "owner's broker." This situation is called an ostensible agency because on the surface an agency appears to exist. Once this type of agency is created, the owner is prevented by estoppel* from denying its existence.
*Estoppel - A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct, or silence.
4. Ratification - A method of creating an agency relationship in which the principal (seller or buyer) accepts the conduct of someone who acted without prior authorization as the principal's agent. Example: A licensee who shows a property without the owner's prior approval, and then the owner agrees to work with the agent to sell the property.
Note that in California, there are THREE ways to create agency: by agreement, by ratification, and by estoppel.
HURRY IM BEING TIMED
Most loans are paid back in __________ installments.A. daily. weekly. monthly. yearly
Answer:
monthly as far as I know
It should be noted that most loans are paid back in monthly basis to the financial institution.
What is loan?A loan serves as the sum of money that is been borrowed by individuals or companies from financial institutions or banks.
This is usually done to financially manage planned one business, however, most loans are paid back in monthly basis.
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Assume that Jordan Enterprises's radio broadcast license is renewable at the end of each 10-year term and management has provided evidence that approval of the renewal is highly probable. In this case, the broadcast license qualifies as anindefinite-life intangible asset and is not subject to amortization. Therefore, the firm carries the broadcast license at its original cost of $786,000.
On December 31, 2015 the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radiosubscriptions, Internet broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment indicators, management believes that it is more likely than not that the broadcast license may be impaired. Therefore, the company must test the broadcast license for impairment. Similar broadcast licenses have been sold in auctions for $676,000.
Assuming that renewal of the broadcast license is probable for this indefinite-life intangible asset, analyze the accounting for impairment and prepare the journal entries.
1.) Conduct the impairment test indicated forindefinite-life intangible asset at the end of the year and determine the impairment loss, if any. (If you selected "No" that an impairment loss is not indicated, then leave the impairment loss input cell blank. Show a loss with a parentheses or minus sign.)
2.) Next, prepare the journal entry required to record any impairment loss. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the tableblank.)
Answer:
Jordan Enterprises
1) The impairment loss = $110,000.
2) Journal Entry to record the impairment loss:
Debit Broadcast License Impairment Loss $110,000
Credit Accumulated Impairment Loss $110,000
Explanation:
a) Data and Calculations:
Broadcast license original cost (book value) = $786,000
Market value of similar broadcast license = 676,000
Impairment loss = $110,000
b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.
You have collected data for the 50 U.S. states and estimated the following relationship between the change in the unemployment rate from the previous year and the growth rate of the respective state real GDP (). The results are as follows:
Δur= (0.12) -(0.04)x gy, R2= 0.36, SER= 0.78
Assuming that the estimator has a normal distribution, the 95% confidence interval for the slope is approximately the interval:
a. [-0.31, 0.15]
b. [2.57, 3.05 ]
c. [-0.33, - 0.13]
d. [-0.13, -0.15]
Answer:
[ -0.13, -0.15 ] ( D )
Explanation:
Given data :
sample size ( n ) = 50
Independent variable ( p ) = 1
determine the confidence interval for the slope
Df ( degree of freedom ) = n - p - 1 = ( 50 - 1 - 1 ) = 48
b ( estimated slope ) = -0.23
Standard error of slope = 0.04
confidence interval = 95%
For confidence interval of 95% and Df of 48 ; critical value ( t ) = 2.011
∴ Confidence interval
= -0.23 ± ( 2.011 * 0.04)
= -0.23 ± 0.08044
= [ -0.13, -0.15 ]
'Teaching profession is an important profession of nation' Justify this statement.
Answer:
A teacher plays a role of a mentor as well as of a facilitator.
Explanation:
Teachers instill knowledge and skills in our youngsters of the nation. They are the nation builders. The state of teaching is stronger because teachers everywhere are leading from their classrooms and taking over new roles to enhance education for teenagers.
A teacher plays a role of a mentor as well as of a facilitator.
Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Wesley's recognized gain on the sale is __________
b. Wesley's adjusted basis for the new residence is ___________
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is _____________, and his adjusted basis for the new residence is __________
Answer:
a. Wesley's recognized gain on the sale is $0.
b. Wesley's adjusted basis for the new residence is $325,000
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $326,520, and his adjusted basis for the new residence is $325,000.
Explanation:
Wesley's actual gain = $363,000 - $21,780 - $600 - $300 - $800 - $200,000 = $139,520, but it can all be excluded using section 121.
If the selling price is $800,000;
Wesley's actual gain = $800,000 - $21,780 - $600 - $300 - $800 - $200,000 = $576,520, but he can exclude $250,000, so his recognized gain = $326,520
Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,600; remodeling of offices, $22,200; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,200; addition of a security system to the manufacturing facility, $25,200.How should Demmert account for each of these expenditures
Answer and Explanation:
The description is as follows:
The annual maintenance for an equipment is $5,600 it would be classified as a normal repairs & maintenance and the same would be expensed
The remodeling of office for $22,200 would be classified as an improvement. The same would be capitalized & depreciated
The rearrangement of the shipping & receiving area for $35,200 would be classified as a rearrangement and The same would be capitalized & depreciated
The addition for $25,200 would be classified as an addition and The same would be capitalized & depreciated
g Customers arrive at the window at a rate of 12 per hour and it take the teller 4 minutes, on average, to serve a customer. Use this information to calculate the requested items in columns a and b. The BHFC's operations manager is considering adding a second window to this branch which would cost the bank $20,000 annually. The operations manager also estimates the bank's revenue will increase by $2,000 annually for each minute of reduction in custimer waiting time. Should the BHFC add the second window?
Answer:
The BHFC
The BHFC should add the second window as it will half customer's waiting time and increase revenue for the branch.
Explanation:
a) Data and Calculations:
Customers arrival rate at the window = 12/hour
equivalent to 12/60 minutes or 1/5 minutes
Time the teller takes to serve a customer = 4 minutes
Total time to serve 12 customers in an hour = 48 minutes
Cost of adding a second window to the branch = $20,000
Savings in reducing customer waiting time = $2,000
Average customer waiting time = 4 minutes
Total time to serve 12 customers in an hour using the second window = 24 minutes (48/2)
Therefore, customers waiting time will half to 2 minutes (4/2)
Increase in revenue by the reduction in customer waiting time = $2,000 * 24 = $48,000
Net saving = $28,000 ($48,000 - $20,000)
A firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 perfectly competitive. oligopoly. pure monopoly. monopolistically competitive. b. Firms in this industry will likely earn: multiple choice 2 an economic profit. a normal profit. an economic loss. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic losses will become smaller. normal profits will increase. economic profits will increase. economic profits will fall.
Answer:
a. Oligopoly.
b. an economic profit.
c. economic profits will fall.
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, which may either be similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. It's a market that is typically controlled by many small firms.
III. Difficult entry to new firms.
In this scenario, a business firm is operating in the United States with only two other competitors in the industry. Thus, the following can be stated about the business firm;
a. It is likely this industry would be characterized as an oligopoly.
b. Firms in this industry will likely earn an economic profit.
c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall.
In conclusion, a business firm operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.
Why do you think our economy continues to experience wage differences among groups - please
discuss with relevant examples?
Answer:
Las propuestas principales para revisar la determinación de los salarios, el valor (no) asignado al trabajo y sus efectos sobre hombres y mujeres incluyen: 1. la Economía de la familia y la división del trabajo por género; 2. las diferencias salariales por género: el capital humano y la discriminación en el mercado de trabajo; 3. el dualismo y segmentación del trabajo por género; 4. la segregación ocupacional por género; 5. la economía marxista y el género; 6. el género y la economía según las feministas; 7. la crisis económica y el género; 8. las mujeres y la recesión; 9. los estudios económicos con perspectiva de género y 10. la explotación de las fuentes estadísticas
Explanation:
Use the following information for the Quick Study below. (The following information applies to the questions displayed below.]
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,500 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,500 Percent of Direct Materials Added 708 100% 803 Percent of Conversion 308 100% 30% $3,070 (includes $2,130 for direct materials and $940 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $ 20,910 $ 22,360 QS 16-13 Weighted average: Journal entry to transfer costs LO P4
Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted average method.
Answer:
The Carlberg Company
Journal Entry:
Debit Work in Process (Painting Department) $36,000
Credit Work in Process (Assembly Department) $36,000
To record the transfer of 10,000 units from the assembly department to the painting department.
Explanation:
a) Data and Calculations:
Units started during November = 12,500
Assembly Department
Units Percent of Direct Percent of
Materials Added Conversion
Beginning work in process 3,000 70% 30%
Units started during Nov. 12,500
Units transferred out 10,000 100% 100%
Ending work in process 5,500 80% 30%
Cost of beginning work in process = $2,130 $940 $3,070
Costs added during the month: $ 20,910 $ 22,360 $43,270
Total costs of production $23,040 $23,300 $46,340
Equivalent units of production:
Units transferred out 10,000 10,000 10,000
Ending work in process 5,500 4,400 1,650
Total equivalent units 14,400 11,650
Cost per equivalent unit:
Total costs of production $23,040 $23,300
Total equivalent units 14,400 11,650
Cost per equivalent unit $1.60 $2.00
Cost assigned to: Materials Conversion Total
Units transferred out $16,000 $20,000 $36,000
($1.60*10,000) ($2*10,000)
Ending Work in process 7,040 3,300 10,340
($1.60*4,400) ($2*1,650)
Total costs allocated $23,040 $23,300 $46,340
Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $19,700,000 and cost of goods sold of $10,835,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $3,546,000. Total administrative expenses are expected to be $788,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income.
Required:
Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. Enter your answers in dollars and not in millions.
Answer:
The budgeted net income for the coming year is $2,718,600.
Explanation:
The budgeted income statement for Coral Seas Jewelry Company for the coming year can be constructed as follows:
Coral Seas Jewelry Company
Budgeted Income Statement
For the Coming Year
Details Amount ($)
Sales 19,700,000
Cost of Goods Sold (10,835,000)
Gross Margin 8,865,000
Marketing Expenses (3,546,000)
Administrative Expenses (788,000)
Operating income 4,531,000
Income Tax (40%) (1,812,400)
Net Income 2,718,600
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon invests $130,000 of cash. They each receive 100 shares in Ion Corporation, worth $130,000, but Yvonne also receives $35,000 in cash from Ion. Ion Corporation has a basis of $__________ in the equipment. Yvonne has a basis of $______________- for her stock and Simon has a basis of $fill in the blank 3 for his stock.
Answer:
$145,000;$110,000;$130,000
Explanation:
Based on the information given the Corporation has a basis of the amount of $145,000 in the equipment calculated as ( Basis of the amount of $110,000+ Cash Received of the amount of $35,000) . Secondly Yvonne has a basis of the amount of $110,000 for her stock which is calculated as (basis in equipment of the amount of $110,000- Boot received of the amount of $35,000+ the lesser of the amount realized as gain which is $35,000) and lastly Simon has a basis of the amount of $130,000 for his stock which represent the cash Contributed by Simon.
The Ring Division of A1d-Y6z Company reported the following information for May: selling price per unit .................... $35 variable costs per unit ................... $12 turnover .................................. 2.50 residual income ........................... $229,600 margin .................................... 22% units sold ................................ 40,000 Calculate the number of units the Ring Division needed to sell in May in order for the residual income in May to be $505,600.
Answer:
52,000 units
Explanation:
Selling price = $35*40,000 = $1,400,000
Variable cost = $12 * 40,000 = $480,000
Contribution margin = $1,400,000 - $480,000 = $920,000
Fixed cost = Residual income + Contribution
Fixed cost = $920,000 - $229,600
Fixed cost = $690,400
Sales to earn residual income = [Fixed cost + Desired profit] / Contribution per unit
Sales to earn residual income = [$690,400 + $505,600] / $35 - $12
Sales to earn residual income = $1,196,000 / $23
Sales to earn residual income = 52,000 units
Crane Company had 190000 shares of common stock, 19000 shares of convertible preferred stock, and $1490000 of 4% convertible bonds outstanding during 2021. The preferred stock is convertible into 39000 shares of common stock. During 2021, Crane paid dividends of $0.80 per share on the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $590000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny)
Answer:
Basic earnings per share(EPS)=$2.90
Explanation:
Earnings per share is the total earnings attributable to ordinary shareholders divided by the number of units of common stock .
It represents profit per unit of stock unit held by common stock holder investor. The higher, the more profitable and the better.
Earnings per share = Earnings attributable to ordinary shareholders / units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Net Income 2021= $590,000=
Preference Dividend =$2 × 19,000=$38,000
Earnings attributable to ordinary shareholders for 2021=
=$590,000-$38,000=$552,000
Basic Earnings per share=$552,000/190,000 shares=$2.90
Basic earnings per share(EPS)=$2.90
The Pines Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:
Variable manufacturing cost $ 180
Variable selling and administrative cost 90
Applied fixed manufacturing cost 60
Allocated fixed selling and administrative cost 75
What price will the company charge if the firm uses cost-plus pricing based on total manufacturing cost and a markup percentage of 160%?
Answer:
$ 624
Explanation:
Given :
Variable manufacturing cost = $ 180
Applied fixed manufacturing cost = $ 60
Therefore, total manufacturing cost = 180 + 60
= $ 240
Mark up percentage = 160%
Price to be charged = 240 + 160% of 240
= 240 + 384
= $ 624
Sheridan Company has 7500 shares of 5%, $100 par value, cumulative preferred stock and 15000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $71250 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above information,
The previous year preference dividend payable
= Previous year preferred dividend payable + Current year preference dividend payable - Total dividend paid in 2019
= (7,500 × $100 × 0.05) + (7,500 × $100 × 0.05) - $71,250
= $37,500 + $37,500 - $71,250
= $3,750
The dividends received by stockholders in 2020 will be
= Total dividend paid in 2020 - Current year preferred dividend - Previous year preference dividend payable
= ($71,250 - $37,500 - $3,750)
= $30,000
Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,600,000, with an additional $180,000 in shipping and installation costs. Marston estimates that its accounts reveivable and inventories need to increase by $720,000 to support the new project, some of which is financed by $288,000 increase in spontaneous liabilites (accounts payable and accruals).
The total cost of Martson's new equipment is ___________
a. $3,780,000
b. $4,212,000
c. $720,000
Answer:
a. $3,780,000
Explanation:
According to the scenario, calculation of the given data are as follows
New equipment = $3,600,000
Shipping and installation = $180,000
We can calculate the total cost of Martson's new equipment by using following formula,
Total Cost = New equipment cost + Shipping and Installation cost
By putting the value, we get
Total Cost = $3,600,000 + $180,000
= $3,780,000
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities:
Mixing: water, sugar, and beverage concentrate are mixed.
Filling: mixed beverage is filled into 12-oz. cans.
Packaging: properly filled cans are boxed into cardboard "fridge packs."
The activity costs associated with these activities for the period are as follows:
Mixing $286,000
Filling 253,500
Packaging 110,500
Total $650,000
The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 6,760,000 cans during the period, of which only 6,500,000 cans are actually packaged. 260,000 cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to decline from 260,000 cans to 65,000 cans, thus increasing the number of filled cans to 6,695,000 [6,500,000 (260,000 - 65,000)].
Required:
a. Determine the total activity cost per packaged can under present operations.
b. Determine the amount of increased packaging activity costs from the expected improvements.
c. Determine the expected total activity cost per packaged can after improvements.
Answer:
A. $0.1 per can
B. $3,315
C. 0.098 per packaged can
Explanation:
a) Calculation to Determine the total activity cost per packaged can under present operations.
Using this formula
Total activity cost per packaged = Total activity cost under present operations ÷ total cans packaged
Let plug in the formula
Total activity cost per packaged= $650,000 ÷ 6,500,000
Total activity cost per packaged= $0.1 per can
Therefore the total activity cost per packaged can under present operations is $0.1 per can
b) Calculation to Determine the amount of increased packaging activity costs from the expected improvements.
First step is to calculate the Packaging cost per bottle =
Using this formula
Packaging cost per bottle = Current packaging cost ÷ total cans packaged
Let plug in the formula
Packaging cost per bottle = 110,500 ÷ 6,500,000
Packaging cost per bottle = $0.017 per bottle
Second step is to calculate the Total packaging cost
Using this formula
Total packaging cost = Total bottle × cost per bottle
Let plug in the formula
Total packaging cost= 6,695,000 × $0.017
Total packaging cost= $113,815
Now let determine the amount of increased packaging activity costs from the expected improvements.
Using this formula
Amount of increased packaging activity costs = total packaging cost - current packaging cost
Let plug in the formula
Amount of increased packaging activity costs= $113,815 - 110,500
Amount of increased packaging activity costs= $3,315
Therefore the amount of increased packaging activity costs from the expected improvements is $3,315
c) Calculation to Determine the expected total activity cost per packaged can after improvements
First step is to calculate Total activity cost using this formula
Total activity cost = Mixing cost + filling cost + packaging cost
Let plug in the formula
Total activity cost == $286,000 + $253,500 + $113,815
Total activity cost == $653,315
Now let determine the Expected total activity cost per packaged can
Using this formula
Expected total activity cost per packaged can = Total activity cost ÷ no. of bottles
Let plug in the formula
Expected total activity cost per packaged can= $653,315 ÷ 6,695,000
Expected total activity cost per packaged can=0.098 per packaged can
Therefore the expected total activity cost per packaged can after improvements is 0.098 per packaged can