Answer:
Both sales and account receivable
Explanation:
In the case when the company sells the goods or services on an account and the revenue is to be recorded prematurely so here the both accounts i.e. sales and the account receivable are overstated as it impacts these two accounts
Therefore the same is to be considered
hence, Both sales and account receivable are overstated
Sheffield Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6450000 on March 1, $5350000 on June 1, and $8250000 on December 31. Sheffield Corp. borrowed $3250000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12750000 note payable. What are the weighted-average accumulated expenditures
Answer:
$8,495,833
Explanation:
Calculation of weighted-average accumulated expenditures
Date Payments Funds used Annualized Amount
Mar 1 $6450000 10/12 $6450000*10/12 $5,375,000
Jun 1 $5350000 7/12 $5350000*7/12 $3,120,833
Dec 31 $8250000 0/12 $$8250000*0/12 $0
Weighted Average Expenditures $8,495,833
You are considering a project which has been assigned a discount rate of 5 percent. If you start the project today, you will incur an initial cost of $4,100 and will receive cash inflows of $2,900 a year for 2 years. If you wait one year to start the project, the initial cost will rise to $4,320 and the cash flows will increase to $3,257 a year for 2 years. What is the value of the option to wait
Answer:
$361.14
Explanation:
start the project today:
initial outlay = -$4,100
cash flow year 1 = $2,900
cash flow year 2 = $2,900
NPV = -$4,100 + $5,392.29 = $1,292.29
if you start the project in one year:
initial outlay year 1 = -$4,320
cash flow year 2 = $3,257
cash flow year 3 = $3,257
NPV year 1 = -$4,320 + $6,056.10 = $1,736.10
value of option to wait = ($1,736.10 / 1.05) - $1,292.29 = $361.14
When you see an advertisement for a store and decide to shop there, which element of the marketing mix has succeeded?
O Presentation
O Product
O Place
O Promotion
Answer:
Promotion
Explanation:
Because it is telling people that the product is ready for them to buy it
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.
Answer and Explanation:
The preparation of the cash flow statement is presented below:
Forten Company
Statement of Cash Flows
For Current Year Ended December 31
Cash flows from operating activities
Net Income $110,575
Adjustments made
Depreciation expense $31,750
Less: Increase in Accounts receivable -$20,755
Less: Increase in Inventory -$29,356
Add: Decrease in Prepaid expense $795
Less: Decrease in Accounts payable -$67,034
Add: Loss on disposal of equipment $16,125
Net cash provided by operating activities $42,100
Cash flows from investing activities
Less: Cash paid for equipment -$52,000
Add: Cash received from sale of equipment $22,625
Net cash used in investing activities -$29,375
Cash flows from financing activities:
Cash borrowed on short-term note $5,100
Less: Cash paid on long-term note -$55,625
Add: Cash received from issuing stock $72,000
Less: Cash paid for dividends -$52,300
Net cash used in financing activities -$30,825
Net increase (decrease) in cash -$18,100
Add: Cash balance at beginning of year $84,500
Cash balance at end of year $66,400
When a bottleneck occurs in a process used in the production of multiple products, the company must determine the contribution margin for each product and give priority to the product that has the lowest contribution margin per bottleneck hour.
a. True
b. False
Answer:
b. False
Explanation:
In project management or in production processes, a bottle neck is a process where the limited capacity of the process reduces its capacity of the whole chain process. The results of having bottleneck in a process are supply overstock, stalls in production, pressure from customers, etc.
When bottleneck occurs in the process used in production of multiple products, the company should determine contribution margin for each of the product and then priority should be given to that product that contributes to the maximum contribution margin per bottleneck hour.
A produce distributor uses 779 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an annual carrying cost of 39 percent of the purchase price per crate. Ordering costs are $27. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ
Answer:
$1,498.86
Explanation:
Given that;
Packing of crates per month(u) = 779
Annual carrying cost of 39% of the purchase price per crate
Ordering cost (S) = $27
D = 779 × 12 = $9,348 crates per year
H = 0.39P
H = 0.39 × $12
H = $4.68 crates per year
Total ordering cost = D/Q × S
= ( $9,348 / 779 ) × $27
= $324
Total Holding cost = Q / 2 × H
= ( 779 / 2 ) × $4.68
= $1,822.86
Annual savings = Total holding cost - Total ordering cost
= $1,822.86 - $324
= $1,498.86
The firm would be saving $1,498.86 annually.
Farmer and Taylor formed a partnership with capital contributions of $285,000 and $335,000, respectively. Their partnership agreement calls for Farmer to receive a $87,000 per year salary. The remaining income or loss is to be divided equally. Assuming net income for the current year is $237,000, the journal entry to allocate net income is:
Answer:
Dr Income Summary $237,000
Cr Farmer, Capital $162,000
Cr Taylor,Capital $75,000
Explanation:
Preparation of the journal entry to allocate net income
Based on the information given in a situation where their partnership agreement calls for Farmer to receive the amount of $87,000 per year salary in which the remaining income or loss is to be divided equally among them which means that Assuming the net income for the current year is the amount of $237,000, the journal entry to allocate the net income is:
Dr Income Summary $237,000
Cr Farmer, Capital $162,000
($237,000-$75,000)
Cr Taylor,Capital $75,000
[($237,000-$87,000)/2]
A corporation declares $25 million in net income, $1 million in preferred stock dividends, and $7 million in common stock dividends. By how much will shareholders' equity increase on the balance sheet
Answer:
$17 million
Explanation:
A corporation declares $25 million as it's net income
The preferred stock dividend is $1 million
The common stock dividend is $5 million
Therefore the amount in which the shareholders stock equity will increase can be calculated as follows
= net income - preferred stock dividend-common stock dividend
= $25 million - $1 million +$7million
= $25 million -$8million
= $17 million
Rick O'Shea, the only employee of Hunter Furniture Company, makes $32,400 per year and is paid once a month. For the month of January, his federal income taxes withheld are $189, state income taxes withheld are $27, social security is 6.2% on a maximum wages of $122,700, Medicare tax is 1.45%, State Unemployment Tax is 5.4%, and Federal Unemployment tax is 0.6%, both on a maximum wages of $7,000 per employee. What is the employer's payroll tax expense associated with Rick's paycheck
Answer: $368.55
Explanation:
Employer payroll tax is;
= Social security + Medicare + State Unemployment Tax + Federal Unemployment tax
Monthly salary = 32,400/12 = $2,700
= (6.2% * 2,700) + (1.45% * 2,700) + ( 5.4% * 2,700) + ( 0.6% * 2,700)
= $368.55
An example of a discretionary fixed cost would be: Group of answer choices Taxes on the factory. Depreciation on manufacturing equipment Factory Liability Insurance required by state law Research and development
Answer:
Research and development
Explanation:
Fixed cost is cost that does not vary with output. It is cost that is incurred regardless of the units of output produced
Discretionary fixed cost is cost that is incurred at the discretion of the management of a company.
A company can decide to undertake research and development or not to. So, it is an example of discretionary fixed cost
City Street Fund has a portfolio of $450 million and liabilities of $10 million. a. If there are 44 million shares outstanding, what is the net asset value
Answer:
10
Explanation:
City street fund has a portfolio value of $450 million
Liabilities is $10 million
Outstanding shares is 44 million
Therefore the net asset value can be calculated as follows
Portfolio value-liabilities/no of shares outstanding
= 450 million-10million/44 million
= 440 million/44 million
= 10
Hence the net asset value is 10
Vaughn Manufacturing incurred the following costs for 72000 units: Variable costs $432000 Fixed costs 392000 Vaughn has received a special order from a foreign company for 4000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $5600 for shipping. If Vaughn wants to earn $8000 on the order, what should the unit price be
Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to: Group of answer choices determine where the funding will come from look for customers create a business plan find the idea for his business choose a form of business organization
Bramble Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 76 units that cost $18 per unit. During the current month, the company purchased 478 units at $18 each. Sales during the month totaled 362 units for $43 each. What is the cost of goods sold using the LIFO method
Answer:
$6516
Explanation:
LIFO means last in, first out. It means that it is the last purchased inventory that is sold first.
Total sales in the month was 362 units, this would be taken from the inventory purchased during the month
= 362 x $18 = $6,516
Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $820,000. The estimated residual value of the building is $52,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year
Answer:
The depreciation expense for the second year would be $60,352.
Explanation:
Double-declining-balance can be described as a method of depreciation method that depreciates an assets at twice the rate of the straight line depreciation method.
The depreciation expense for the second year can then be calculated as follows:
Straight line depreciation rate = 1 / Number expected useful life = 1 / 25 = 0.04, or 4%
Double-declining depreciation rate = Straight line depreciation rate * 2
= 4% * 2 = 8%
Year 1 depreciation expense = Building cost * Double-declining depreciation rate = $820,000 * 8% = $65,600
Year 2 depreciation expense = (Building cost - Year 1 depreciation expense) * Double-declining depreciation rate = ($820,000 - $65,600) * 8% = $754,400 * 8% = $60,352
Therefore, the depreciation expense for the second year would be $60,352.
Sheridan Company purchased a depreciable asset for $567000. The estimated salvage value is $29000, and the estimated useful life is 10000 hours. Carson used the asset for 1700 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset in the current year
Answer:
Annual depreciation= $91,460
Explanation:
Giving the following information:
Purchase price= $567,000
Salvage value= $29,000
Useful life in hours= 10,000
To calculate the depreciation per year using the activity method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(567,000 - 29,000) / 10,000]*1,700
Annual depreciation= 53.8*1,700
Annual depreciation= $91,460
Hamilton International issues 5,000 shares of its $1 par value common stock to provide funds for further expansion. If the issue price is $15 per share, what is the journal entry to record the share issue
Answer and Explanation:
The journal entry for issuance of the shares is as follows:
Cash Dr (5,000 × $15) $75,000
To Common stock(5,000 × $1) $5,000
To Additional paid in capital $70,000
(being the issuance of the shares is recorded)
Here the cash is debited as it increased the assets and credited the common stock and additional paid in capital as it increased the equity
Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 20X1, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 20X1 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 20X1. At the end of 20X1, the fair value of the Able stock was $18,000 and the fair value of the Baker stock was $28,000. The stocks were purchased for short-term speculation prior to the effective date of the change in accounting rules for equity investments. Perry owns 10% of each company. Perry should record the receipt of the Baker dividend as
Answer:
Debit Cash $2,400: Credit Dividends receivable $2,400
Explanation:
Date Account Titles and Explanation Debit Credit
31 Dec 20X1 Cash $2,400
Dividend receivables $2,400
(Record of the receipt of the Baker dividend)
Keating Co. is considering disposing of equipment with a cost of $77,000 and accumulated depreciation of $53,900. Keating Co. can sell the equipment through a broker for $28,000 less 5% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is $10,080 $5,880 $12,600 $8,400
Answer:
$8,400
Explanation:
net differential income = total lease revenue - costs associated to leasing the equipment - net selling price
total lease revenue = $47,000costs associated to lease = $12,000net selling price = $28,000 x (1 - 5%) = $26,600net differential revenue = $47,000 - $12,000 - $26,600 = $8,400
Which of these answers the following two questions: 1) how will the firm make money on the product and/or services offered, and 2) how will the firm be positioned in the marketplace
Answer:
1) use Information Technology and Information Systems.
online collaboration. virtual meetings.Big data, cloud computing, internet of things and mobile digital platforms.According to the question, the Value proposition is the answer.
What is Value Preposition?A value proposition is a succinct sentence that explains why customers should select your goods or services. It's more than simply a description of your company's goods or services; it's also the unique solution you offer and the assurance of value you make to clients.
One of the most crucial conversion criteria is the value proposition. A strong value offer may mean the difference between losing and winning a sale. Because of this, it's critical to develop one that truly depicts your goods and services and explains why you're the best option.
Your company's distinctive identification is your value proposition. Without it, customers won't be motivated to buy your products. They might even decide to go with a rival merely because of how well that company's marketing and sales efforts convey its value offer.
To know more about the Value proposition follow the link.
https://brainly.com/question/12104971
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When an organization defines itself and its niche in an environment by the choice of what sector or field of the environment it will use its technology, products, and services to compete in and serve, it is describing its ______.
Answer:
Domain
Explanation:
It should be noted that When an organization defines itself and its niche in an environment by the choice of what sector or field of the environment it will use its technology, products, and services to compete in and serve, it is describing its Domain. Domain can be regarded as the chosen field of action for an organization/company, it encompass the part of the environment chosen by the organization which is vital to the organization, it involves the chosen niche of the organization in the environment.
Ms. McClure is thinking about getting her master's degree in education. She estimates that she will spend about $12,000 a year for three years to get her degree. Her plans are to take evening classes so she can keep her current teaching job. When she finishes her degree, she will get a $5,000 a year raise.
Required:
How long will it take her to recover her investment?
Answer:
ehshdhdhfbdhwiejfhfuebdbchfudhrj
Explanation:
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a landscape archetiect is hired to build a garden which is of the shape of a right traingle. suppose the architech wants to use a brick wall on the side of AC costing $9/ft and a metal fence on the side costing $3/ft suppose the architect has $1620 budget. what is the maxmum area the architect can build with he budget
Answer:
Maximum Ares architect can build is 36,450 [tex]ft^{2}[/tex]
Explanation:
Suppose
The Perpendicular of the triangle = l
The Base of the triangle = b
The hypotenuse of the triangle = h
The hypotenuse of the triangle can be calculated as follow
h = [tex]\sqrt{l^{2} b^{2} }[/tex]
Total Budget = $1,620
As the architect does not want to build anything on the hypotenuse of the triangle area.
So as per given condition
( $9 x l ) + ( $3 x b ) = $1,620
$3 ( 3l + b ) = $1,620
3l + b = $1,620 / $3
3l + b = 540
b = 540 - 3l ...........(1)
Area = 1/2 x l x b
using (1) we will have
Area = 1/2 x l x ($540 - 3l)
Now differentiating w.r.t l
[tex]\frac{d(area)}{dl}[/tex] = [tex]\frac{\frac{1}{2} [ 540l - 3l^{2}] }{dl}[/tex]
0 = [tex]\frac{1}{2} [ 540 - 6l] }[/tex]
0 = 540 - 6l
6l = 540
l = 540/6
l = 90 ft
Placing value of l in (1)
b = 540 - 3(90)
b = 540 - 270
b = 270
So, Maximum area will be calculated as follow
Maximum Ares = [tex]\frac{1}{2}[/tex] x 270 x 270
Maximum Ares = 36,450 [tex]ft^{2}[/tex]
You own a stock that has an expected return of 15.72 percent and a beta of 1.33. The U.S. Treasury bill is yielding 3.82 percent and the inflation rate is 2.95 percent. What is the expected rate of return on the market
Answer: expected rate of return on the market=12.77%
Explanation:
Given that
Expected return =15.72 percent
beta =1.33
Risk free rate=3.82 percent
According to the CAPM FORMULA,
Expected return = Risk free rate+ Beta( expected rate of return on market - Risk free rate
15.72% = 3.82 % + 1.33 ( Em - 3.82%)
0.1572=0.0382+ 1.33 Em - 0.050806
0.1572- 0.0382+ 0.050806 = 1.33 Em
0.169806=1.33Em
Em = 0.169806/1.33
=0.12767 x 100
12.767 ≈12.77%
expected rate of return on the market=12.77%
Your firm has net income of $371 on total sales of $1,460. Costs are $800 and depreciation is $130. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow
Answer:
Operating cash flow = $501
Explanation:
Given:
Total sales = $1,460
Total cost = $800
Depreciation = $130
Tax rate = 30% = 0.30
Find:
Operating cash flow
Computation:
Earning Before Interest and Tax = $1,460 - $800 - $130
Earning Before Interest and Tax = $530
Tax = Tax rate x $530
Tax = 0.30 x $530
Tax =$159
Operating cash flow = $530 + $130 - $159
Operating cash flow = $501
g 2018: US Bond A is issued at par with annual coupon of 2% and maturity of 5 years with face value of $1,000. 2019: Interest rates increase in the market 2020: US Bond B is issued at par today with annual coupon of 5% and a maturity of 3 years with face value of $1,000.What should the price of Bond A be today, 2020, with 3 years left to maturity, so that its yield to maturity is equal to the yield to maturity on Bond B
Answer:
$918.48
Explanation:
price of bond A after the interest rate increased to 5% and the time to maturity is 3 years:
PV of face value = $1,000 / (1 + 5%)³ = $863.84
PV of coupon payments = $20 x 2.7232 (PV annuity factor, 5%, 3 periods) = $54.46
Market value of bond A = $863.84 + $54.46 = $918.48
Since the market rate is higher than the coupon rate, the bond will sell at a discount.
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 8 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
the current price of the stock is $71.75
Explanation:
The computation of the current stock price is shown below:
Price at year 9 is
= Dividend ÷ (required rate of return - growth rate)
= $14 ÷ (14 - 8%)
= $233.33
Now the current price of the stock is
= Price at year 9 ÷ (1 + required rate of return)^number of years
= $233.33 ÷ (1 + 0.14)^9
= $71.75
Hence, the current price of the stock is $71.75
An aging of a company's accounts receivable indicates that $13900 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1230 credit balance, the adjustment to record bad debts for the period will require a
Answer:the adjustment to record bad debts for the period will require a
Debit on Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670
Explanation:
Account receivables for uncollectibles= $13,900
Allowance for Doubtful Accounts = credit balance of $1230
Adjusting entry for bad debts expense =Account receivables - credit balance of $1230
= $13,900- $1,230
=$12,670
Adjusting entry for the record of bad debts expense
Accounts titles Debit Credit
Bad debt expenses $ 12,670
To Allowance for doubtful accounts $ 12,670
A company issues $100,000 face value, zero-coupon, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for similar risk bonds is 12%. The bond uses annual compounding. The firm uses effective-interest amortization. What is the amount for the second discount or premium Bond Payable journal entry
Answer:
Amount = Maturity/(1+risk rate)⁴
Amount = $100,000/(1+0.12)⁴
Amount = $63,552 (Approx)
Interest payable = $63,552 x 0.12
Interest payable = $7,626 (Approx)
Interest payable (2nd period) = ($63,552+$7,626) x 0.12
Interest payable (2nd period) = $8,541 (Approx)
Explanation:
JOURNAL ENTRY
BOOKS OF (.....)
Date Account title Debit Credit
Cash a/c Dr $63,552
To Bonds payable a/c $63,552
1st-period
Bond Interest a/c Dr $7,626
To Bonds payable a/c $7,626
2nd-period
Bond Interest a/c Dr $8,541
To Bonds payable a/c $8,541
If it is estimated that 30 persons will be living in this new chapter house, what would be the Skulls' annual cost savings by selecting the less costly location, rather than the more costly
Answer: B. $1,500
Explanation:
Cost of using Alpha Avenue
= 5,000 + (200 * 30 people)
= $11,000
Cost of using Beta Blvd.
= 8,000 + (150 * 30 people)
= $12,500
Cost savings = 12,500 - 11,000
= $1,500
