Answer:
$192,000 million
Explanation:
Calculation for how much revenue should Parmac recognize in the current year
First step is to find the percentage of completion using this formula
Percentage of completion=Cost incurred/Total expected cost
Let plug in the formula
Percentage of completion=$144 million/$360 million
Percentage of completion=0.4*100
Percentage of completion=40%
Last step is to find the revenue recognized using this formula
Revenue recognized=Total contract *Percentage of completion
Let plug in the formula
Revenue recognized=$480 million*40%
Revenue recognized=$192,000 million
Therefore the amount of revenue that Parmac should recognize in the current year will be $192,000 million
Degree of Operating Leverage Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 3,500 units sold is $58,500. Required: Calculate the degree of operating leverage. Note: Round answer to one decimal place.
Answer:
1.8
Explanation:
Sales= $60
Variable cost= $21
Quantity= 3,500 pairs of shoes
Fixed operating cost= $58,500
The first step is to calculate the total contribution margin
= sales-variable cost × Quantity
= $60-$21 × 3500
= $39 × 3500
= $136,500
The operating income can be calculated as follows
= Sales - variable cost × Quantity - fixed operating costs
= $60-$21×3500-58,500
= $136,500-58,500
= $78,000
Therefore the degree of operating leverage can be calculated as follows
= Total contribution margin/Operating income
= 136,500/78,000
= 1.8
Hence the degree of operating leverage is 1.8
You are planning to save for retirement over the next 30 years. To do this, you will invest $780 per month in a stock account and $380 per month in a bond account. The return of the stock account is expected to be 9.8 percent, and the bond account will earn 5.8 percent. When you retire, you will combine your money into an account with an annual return of 6.8 percent. Assume the returns are expressed as APRs. How much can you withdraw each month from your account assuming a 25-year withdrawal period
Answer:
The amount that can be withdrawn each month from your account assuming a 25-year withdrawal period is $14,278.02.
Explanation:
The total amount saved for 30 years after retirement can be estimated by employing the formula for calculating the future value (FV) of ordinary annuity for both stock and bond as follows:
Future Value of Stock
FVs = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FVs = Future value of the amount invested in stock after 30 years =?
M = Monthly investment = $780
r = Monthly return rate = 9.8% / 12 = 0.098 / 12 = 0.00816666666666667
n = number of months = 30 years * 12 months = 360
Substituting the values into equation (1), we have:
FVs = $780 * (((1 + 0.00816666666666667)^360 - 1) / 0.00816666666666667)
FVs = $780 * 2,166.28572458476
FVs = $1,689,702.87
Future Value of Bond
FVb = M * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FVb = Future value of the amount invested in bond after 30 years =?
M = Monthly investment = $380
r = Monthly interest rate = 5.8% / 12 = 0.058 / 12 = 0.00483333333333333
n = number of months = 30 years * 12 months = 360
Substituting the values into equation (2), we have:
FVb = $380 * (((1 + 0.00483333333333333)^360 - 1) / 0.00483333333333333)
FVb = $380 * 966.933721691683
FVb = $367,434.81
Calculation of the amount that can be withdrawn monthly for 25-year withdrawal period
This can be calculated by employing the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (3)
Where;
PV = Sum of present values of stock and bond investments after retirement = FVs + FVb = $1,689,702.87 + $367,434.81 = $2,057,137.68
P = Monthly withdrawal = ?
r = Monthly interest rate = APR / 12 = 6.8% ÷ 12 = 0.068 / 12 = 0.00566666666666667
n = number of months = 25 years * 12 months = 300
Substitute the values into equation (3) and solve for P, we have:
$2,057,137.68 = P * ((1 - (1 / (1 + 0.00566666666666667))^300) / 0.00566666666666667)
$2,057,137.68 = P * 144.077250670093
P = $2,057,137.68 / 144.077250670093
P = $14,278.02
Therefore, the amount that can be withdrawn each month from your account assuming a 25-year withdrawal period is $14,278.02.
Professional Headhunters, Inc. (PHI), is a job placement company that operates in the northeastern United States. During Year 1, the company earned $145,000 in revenue by providing services to customers. However, it collected only $120,000 of the revenue in cash. PHI expected to collect the remaining $25,000 in Year 2. In addition, PHI incurred $80,000 of expenses. However, by the end of Year 1, PHI had paid only $75,000 of the cash owed for expenses because it had not yet paid $5,000 to employees who had worked during Year 1 but had not been paid by the end of the year. PHI expected to pay the $5,000 in cash to the employees during Year 2. Based on this information alone, determine the amount of net income, total assets, and total liabilities PHI should report on its Year 1 financial statements.
Answer:
Professional Headhunters, Inc. (PHI)
i) Net Income = Revenue minus Expenses
= $145,000 - $80,000
= $65,000
ii) Total assets = Cash balance plus Accounts Receivable balance
= $45,000 + $25,000
= $70,000
iii) Total liabilities = Accounts payable
= $5,000
Explanation:
Earned Revenue = $145,000
Collection from customers = $120,000
Accounts receivable balance = $25,000
Expenses incurred = $80,000
Cash payment for expenses = $75,000
Accounts payable for expense = $5,000
Cash balance:
Collection from customers = $120,000
Cash payment for expenses = $75,000
Cash balance = $45,000
The first year of operations for a company was Year 1. The net income for Year 1 was $21,200 and dividends of $12,600 were paid. In Year 2, the company reported net income of $35,200 and paid dividends of $5,600. At the end of Year 1, the company had total assets of $162,000. At the end of Year 2, the company had total assets of $ $252,000.What was the amount of retained earnings at the end of Year 1?
Answer:
$8,600
Explanation:
The net income year 1 was $21,200
The dividend paid in year 1 was $12,600
Therefore the retained earnings at the end of year 1 can be calculated as follows
= beginning retained earnings + net income - Dividend
= $0 + $21,200-$12,600
= $21,200 - $12,600
= $8,600
Hence the retained earnings at the end of year 1 is $8,600
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
Manufacturing Overhead Work in Process
(a) 460,000 (b) 390,000 Bal. 15,000 (c) 710,000
260,000
Bal. 70,000 85,000
(b) 390,000
Bal. 40,000
Finished Goods Cost of Goods Sold
Bal. 50,000 (c) 640,000 (d) 640,000
(c) 640,000
Bal. 120,000
The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:______.
Work in Process, ending $ 19,500
Finished Goods, ending 58,500
Cost of Goods Sold 312,000
Overhead applied $ 390,000
For example, of the $40,000 ending balance in work in process, $19,500 was overhead that had been applied during the year.
Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer:
Latta Company
1.
(a) is the Actual Manufacturing Overhead Expense incurred for the year.
(b) is the Manufacturing overhead applied to Work in Process for the year.
(c) is the Cost of goods manufactured for the year.
(d) is the Cost of goods sold for the year.
2. Debit Cost of Goods Sold $70,000
Credit Manufacturing Overhead $70,000
To close the underapplied overhead to cost of goods sold.
3. Debit Work in Process $3,500
Finished Goods $10,500
Cost of goods sold $56,000
Credit Manufacturing Overhead $70,000
To close the underapplied overhead to the 3 accounts.
Explanation:
a) Data and Calculations:
1. T-accounts:
Manufacturing Overhead
Debit Credit
(a) 460,000 (b) 390,000
Bal. 70,000
Work in Process
Debit Credit
Bal. 15,000 (c) 710,000
260,000
85,000
(b) 390,000
Bal. 40,000
Finished Goods
Debit Credit
Bal. 50,000 (d) 640,000
(c) 710,000
Bal. 120,000
Cost of Goods Sold
Debit Credit
(d) 640,000
2. Distribution of overhead applied to production:
Work in Process, ending $ 19,500
Finished Goods, ending 58,500
Cost of Goods Sold 312,000
Overhead applied $ 390,000
3. Allocation of Underapplied:
Work in Process, ending $3,500 (19,500/390,000 * 70,000)
Finished Goods, ending 10,500 (58,500/390,000 * 70,000)
Cost of Goods Sold 56,000 (312,000/390,000 * 70,000)
Underapplied overhead $70,000
A General Power bond carries a coupon rate of 8.2%, has 9 years until maturity, and sells at a yield to maturity of 7.2%. (Assume annual interest payments.) a. What interest payments do bondholders receive each year? b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What will happen to the bond price if the yield to maturity falls to 6.2%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If the yield to maturity falls to 6.2%, will the current yield be less, or more, than the yield to maturity?
Answer and Explanation:
The computation of interest payments is shown below:-
Let us assume the par value be $1,000
1. Interest payment = $1,000 × Coupon rate
= $1,000 × 8.2%
= $82
2.
The computation of sold bond is shown below:-
Sold bonds = 1,000 × coupon rate ÷ Yield to maturity × (1 - 1 ÷ 1.072^number of years) + 1,000 ÷ 1.072^number of years
= 1,000 × 8.2% ÷ 7.2% × (1 - 1 ÷ 1.072^9) + 1000 ÷ 1.072^9
= $1,064.601613
3.
The computation of the bond price is shown below:-
= 1000 × 8.2% ÷ 6.2% × (1 - 1 ÷ 1.062^9) + 1,000 ÷ 1.062^9
= 1134.857572
So, the price increases by $70.25595933
4.
The current yield is more than the yield to maturity.
g Bob estimates when he retires in 20 years, he will need to have $2,000,000 to finance his desired retirement lifestyle. He believes inflation will average 2% over time and their retirement investment return will average 6% until he retires. After retirement, he will invest more conservatively and the portfolio will average a 5% return during a 25 year retirement. If he currently has nothing saved for retirement, what initial amount must he save if his intention is to increase his retirement fund contribution at the inflation rate each year to meet the savings goal
Answer:
Bob will need to contribute $43,704.39
at the end of each period to reach the future value of $2,000,000.00.
Explanation:
a) Data and Calculations:
Period when Bob estimates to retire = 20 years
Desired Future retirement funds = $2,000,000
Average inflation rate over time = 2%
Retirement investment returns = 6%
Expected interest rate = 8% compounded annually (6 + 2)%
Using an online finance calculator,
Bob will need to contribute $43,704.39 at the end of each period to reach the future value of $2,000,000.00.
FV (Future Value) $1,999,998.68
PV (Present Value) $429,096.13
N (Number of Periods) 20.000
I/Y (Interest Rate) 8.000%
PMT (Periodic Payment) $43,704.39
Starting Investment $0.00
Total Principal $874,087.78
Total Interest $1,125,910.9
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. Entry to record service revenues performed but not yet billed (nor recorded). Entry to record janitorial expense incurred but not yet paid. Entry to record rent expense incurred but not yet paid. Entry to record interest expense incurred but not yet paid. Entry to record expiration of prepaid rent.
Answer:
Entry to record service revenues performed but not yet billed (nor recorded).
Dr Accounts receivable (asset, balance sheet)
Cr Service revenue (revenue, income statement)
Entry to record janitorial expense incurred but not yet paid.
Dr Janitorial expense (expenses, income statement)
Cr Janitorial expenses payable (liability, balance sheet)
Entry to record rent expense incurred but not yet paid.
Dr Rent expense (expenses, income statement)
Cr Rent expenses payable (liability, balance sheet)
Entry to record interest expense incurred but not yet paid.
Dr interest expense (expenses, income statement)
Cr Interest expenses payable (liability, balance sheet)
Entry to record expiration of prepaid rent.
Dr Rent expense (expenses, income statement)
Cr Prepaid rent (asset, balance sheet)
Answer:
the numbering
Explanation:
EDGU 2021
An acquiring company issues 800,000 shares of $1.00 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The fair value of the acquiring company’s common stock is $10.00 per share. Direct legal and consult-ing fees incurred pursuant to the combination are $200,000. Direct registration and issuance costs for the acquiring company’s common stock are $100,000. The transaction did not result in goodwill recog-nition or bargain gain recognition. What is the total amount of net assets recognized as a result of this business combination?
Answer: $8,000,000
Explanation:
The Acquiring company issued stock that is value at $10.00 each to be able to acquire 100% of the Investee company.
The total amount of net assets will therefore be the fair value of the stock that was issued to acquire the Investee company.
Net Assets = 800,000 * 10
= $8,000,000
What is Kaycie’s net income?
Answer:
More info needed. (See Explanation):
Explanation: Needed more info to be solveable.
Answer:
1195
Explanation:
Question #1: Barney owns a bagel business in New York City and he wants to increase his total revenue. He knows that when bagels are $1, he sells 250 an hour, and when he lowers the price to $0.75, he sells 275 an hour. a. Calculate the price elasticity of demand for Barney’s bagels. b. Using the price elasticity of demand for Barney’s bagels, explain whether he should raise or lower the price to generate more revenue. c. A bakery moves in across the street from Barney’s shop. Explain what is likely to happen to the price elasticity of demand for Barney’s bagels. Question #2: Explain why you agree or disagree with the following statement: "Higher prices always yield higher revenues."
Answer:
a. Calculate the price elasticity of demand for Barney’s bagels.
0.4 price inelastic
b. Using the price elasticity of demand for Barney’s bagels, explain whether he should raise or lower the price to generate more revenue.
Barney should increase his prices in order to increase total revenue.
c. A bakery moves in across the street from Barney’s shop. Explain what is likely to happen to the price elasticity of demand for Barney’s bagels.
If a bakery moves in front of Barney's bagel place, then the PED of his product is probably going to increase. The higher the competition, the higher the PED. This means that any change in price will result in a higher proportional change in quantity demanded.
2) I do not agree with that statement. If the PED is price inelastic, then increasing the product's price will increase total revenue, but if the PED is price elastic, any small increase in price will result in a larger decrease in quantity demanded. If the PED is price inelastic, then any change in price will not alter total revenue.
Explanation:
The price elasticity of demand shows us how a 1% change in price will affect the quantity demanded of a product.
PED = % change in Q demanded / % change in price
% change in Q demanded = (275 - 250) / 250 = 10%
% change in price = (0.75 - 1) / 1 = -25%
PED = 0.1 / -0.25 = -0.4 or |0.4| in absolute terms
The PED for Barney's bagels is demand inelastic (PED < 1), therefore, a 1% change in price will result in a smaller proportional change in quantity demanded.
If Barney increases his price to $1.50 instead of lowering it, the quantity demanded will decrease only by:
% change in Q demanded = 0.5 change in price x 0.4 = 0.2 or 20% decrease
his total revenue will increase from $250 per hour to 200 x $1.50 = $300 per hour.
Q1. The price elasticity for the company would be 0.4.
Q2. No, it is not true that a higher price would bring higher revenues from their sales.
Question 1:
a. The price elasticity is derived from the given formula:
[tex]\frac{percentagechange in Qd}{percentage change in P}[/tex]
Hence, the percentage change in quantity demanded would be:
[tex]\frac{275 - 250}{250} \\=0.1[/tex]
Now, the percentage change in price would be:
[tex]\frac{0.75 - 1}{1} \\=-25[/tex]
Finally, price elasticity would be:
[tex]\frac{0.1}{-25} \\=-0.4[/tex]
b. Therefore, the business may increase its product's price to get increased revenue as the demand elasticity is 0.4, which means less change in quantity demanded would be seen when prices tend to rise by 1%
c. If the business plan to move across the price elasticity would be seen as rising because of experiencing more competition in the market. Thus, when prices increase by even 1% then the quantity demanded may be seen as changing at a higher rate.
Question 2:
The business revenue is dependent on the price and sales of the product. Further, the elasticity of demand is sales essential for deciding the quantity of demand by the customers. Thus, when demand is highly elastic then increasing the product price would harm the final revenue of the business.
Learn more about price elasticity here:
https://brainly.com/question/23301086
Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment.
Sheffield Corp.
Balance Sheet
December 31, 2022
Cash $128400 Accounts payable $171000
Accounts receivable 124200 Salaries and wages payable 31400
Inventory 207000 Note payable (due 2025) 267000
Short-term investments 90000 Total liabilities $469400
Land (held for future use) 254000 Land 281000
Buildings $336500 Common stock $362000
Less: Accumulated
depreciation (62900) 273600 Retained earnings 739200
Franchise 212400 Total stockholders' equity $1101200
Total assets $1570600 Total liabilities and
stockholders' equity $1570600
a. $821600.
b. $761600
c. $554600.
d. $1019600.
Answer:
c. $554600.
Explanation:
The computation of the property, plant & equipment is shown below:
= Land + Building - Accumulated depreciation
= $281,000 + $336,500 - $62,900
= $554,600
By applying the above formula so that the property, plant & equipment could be come and the same is to be considered
Hence, the correct option is c. $554,600
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 300,000 $ 291,000 Purchases 581,000 928,000 Freight-in 19,000 Net markups 31,000 Net markdowns 5,000 Net sales 910,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)
Answer:
$242,168.82
Explanation:
Inventory on December 31, 2021
Cost. Retail
Beginning inventory 300,000 291,000
Add: purchases 581,000 928,000
Add: freight in. 19,000
Add: net markups. 31,000
900,000 1,250,000
Less net markdown. 5,000
Goods available for 900,000 1,245,000
Cost to retail %
900,000/1,245,000
0.722891566
Less: net sales. 910,000
Estimated ending 335,000
Estimated ending inventory at cost
335,000 × 0.722891566
242,168.82
perior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 211,000 Purchases of raw materials $ 269,000 Direct labor ? Administrative expenses $ 154,000 Manufacturing overhead applied to work in process $ 378,000 Actual manufacturing overhead cost $ 359,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 53,000 $ 34,000 Work in process ? $ 28,000 Finished goods $ 33,000 ? The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $668,000; and the net operating income was $36,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)
Answer:
Direct labor = $14,000
Beginning Work in process = $45,000
Ending Finished goods = $62,000
Explanation:
Note: See the attached excel file for the schedules of cost of goods manufactured and cost of goods sold and an income statement.
Also note: The following workings are used in the excel file:
Workings:
w.1: Direct labor = Total manufacturing costs for the year - Total raw materials used in production - Manufacturing overhead applied to work in process = $680,000 - $288,000 - $378,000 = $14,000
w.2: Cost of goods manufactured = Cost of goods available for sale - Beginning finished goods = $730,000 - $33,000 = $697,000
w.3: Total cost of work in process = Cost of goods manufactured + Ending work in process = $697,000 + $28,000 = $725,000
w.4: Beginning work in process = Total cost of work in process - Total manufacturing cost = $725,000 - $680,000 = $45,000
w.5: Ending finished goods = Cost of goods available for sale - Unadjusted cost of goods sold = $730,000 - $668,000 = $62,000
w.6: Overapplied overhead = Manufacturing overhead applied to work in process - Actual manufacturing overhead cost = $378,000 - $359,000 = $19,000
w.7: Gross profit = Net operating income + Selling expenses + Administrative expenses = $36,000 + $211,000 + $154,000 = $401,000
w.8: Sales = Adjusted cost of goods sold + Gross profit = $687,000 + $401,000 = $1,088,000
alculate the difference between the present value of $200 per year cash payments for the next 40 years and the present value of $200 per year cash payments in perpetuity. Assume in either case, the first payment occurs one year from today and that the appropriate discount rate is 8%/year. The difference in the present value of these two streams of future cash payments that you calculated equals the present value of cash payments over what period of time?
Answer:
Present value of annuity = PV(8%,40,-200,0,0)
Present value of annuity = $2,384.93
Present value of Perpetuity = 200/ 8%
Present value of Perpetuity = 200 / 0.08
Present value of Perpetuity = 2500
The difference between the Present value = $2,500 - $2,384.93 = $115.07
However, both does not equal as time value has to be considered.
The fields company has two manufacturing departments, forming and painting. The company uses the weight average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials 40% complete as to conversion cost. The beginning inventory cost of $60,100 consisted of $44,800 of direct material cost and $15,300 of conversion cost. During the month, the forming department started 300,000 units. At the end of the month,the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting depatment. Cost information for the forming department is as follows:__________.Beginning work in process inventory $60.100Direct materials added during the month 1'231.200Conversion added during the month 896.7001. Calculate the equivalent units of production for the forming department.2. Calculate the cost per equivalent unit of production for forming department3. Using the weight average method, assign costs to the forming department's output - specifically, its units transferred to painting and its ending work in process inventory.
Answer:
Equivalent Units Materials 315,000 Conversion 310,000
Cost PEr EUP Materials =$ 4.0507 Conversion= $ 28.975
Ending Work In Process Costs = $ 357993.28
Units Transferred Costs = $ 9376,818.4
Explanation:
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
BWIP 25,000 60% 40% 15000 10000
+Units started 300,000 300,000 300,000
Equivalent Units 315,000 310,000
Costs Materials Conversion
Beginning work in process inventory $44,800 $15,300
Added during the month 1'231,200 896,7001
Total Costs 1276,000 898 2301
EUP 315,000 310,000
Cost PEr EUP 1276,000 / 315,000 898 2301/310,000
=$ 4.0507 = $ 28.975
Ending Work In Process Costs = $ 357993.28
Materials (30,000* 80% ) = 24000*$ 4.0507= $ 97216.8
Conversion (30,000* 30%) = 9000*$ 28.975= $ 260,776.48
Multiplying it with the EUP to get the costs.
Units Transferred Costs = $ 9376,818.4
Materials (315,000 -30,000 ) = 312000*$ 4.0507= $ 1263,818.4
Conversion (310,000-30,000) = 280,000*$ 28.975= $ 8113,000
In weighted average methhod the number of equivalent units is obtained by adding the ending inventory to the units transferred or the BWIP inv to the units started.
In May of 2021, Raymond Financial Services became involved in a penalty dispute with the EPA. At December 31, 2021, the environmental attorney for Raymond indicated that an unfavorable outcome to the dispute was probable. The additional penalties were estimated to be $777,000 but could be as high as $1,184,000. After the year-end, but before the 2021 financial statements were issued, Raymond accepted an EPA settlement offer of $914,000. Raymond should have reported an accrued liability on its December 31, 2021, balance sheet of: Multiple Choice $270,000. $914,000. $777,000. $1,184,000.
Answer:
$914,000
Explanation:
Based on the information given we were told that Raymond accepted an EPA which is fully known as Environmental Protection Agency settlement offer of the amount of $914,000 which means that the amount that Raymond should have reported as the ACCRUED LIABILITY on its December 31, 2021, balance sheet should have been EPA settlement offer of the amount of $914,000.
ynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $150 per machine hour, and the activity rate for Inspection is $560 per batch. The activity drivers are used as follows: Product A Product X Total Machine hours 1,800 3,000 4,800 Number of batches 53 21 74 What is the amount of Machining cost assigned to Product A
Answer:
$270,000
Explanation:
Calculation for the amount of Machining cost assigned to Product A
Using this formula
Machine cost=Machine hours*Activity rate
Let plug in the formula
Machine cost=1,800*$150
Machine cost =$270,000
Therefore the amount of Machining cost assigned to Product A will be $270,000
Moose Industries faces the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 $0 15% $50,000-$75,000 7,500 25 $75,000-$100,000 13,750 34 $100,000-$335,000 22,250 39 $335,000-$10,000,000 113,900 34 $10,000,000-$15,000,000 3,400,000 35 $15,000,000-$18,333,333 5,150,000 38 Over $18,333,333 6,416,667 35 Last year the company realized $10,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year
Answer: $5,610,000
Explanation:
Earnings before Interest and tax = $10,000,000
Earnings before tax (EBT) = EBIT - Interest
= 10,000,000 - 1,500,000
= $8,500,000
EBT is in the $335,000-$10,000,000 range.
Tax is therefore = Tax on base of bracket + Percentage on Excess above Base (EBT - Base of bracket)
= 113,900 + 34%( 8,500,000 - 335,000)
= $2,890,000
Net Income = EBT - Tax
= 8,500,000 - 2,890,000
= $5,610,000
kurt leased a small building and converted it into a hockey
The Smelting Department of Kiner Company has the following production data for November.Production: Beginning work in process 4,000 units that are 100% complete as to materials and 27% complete as to conversion costs; units transferred out 9,500 units; and ending work in process 7,700 units that are 100% complete as to materials and 50% complete as to conversion costs.Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
Answer:
For material 17,200
For conversion 13,350
Explanation:
The computation of equivalent units of production for (a) materials and (b) conversion costs are shown below:-
Particulars Whole units Materials Conversion costs
Units transferred out 9,500 9,500 9,500
Ending Work in process 7,700 7,700 3,850
(7,700 × 50%)
Total equivalent units 17,200 17,200 13,350
The purchase price of a natural gas-fired commercial boiler (capacity X) was $ eight years ago. Another boiler of the same basic design, except with capacity X, is currently being considered for purchase. If it is purchased, some optional features presently costing $ would be added for your application. If the cost index was for this type of equipment when the capacity X boiler was purchased and is now, and the applicable cost capacity factor is , what is your estimate of the purchase price for the new boiler?
Answer:
=352,931.20
Explanation:
Calculation for the estimate of the purchase price for the new boiler
Purchase price of new boiler = 181,000* (221 / 162) * (1.42)^0.8 + 28,000
Purchase price of new boiler =181,000*1.36*1.32+28,000
Purchase price of new boiler =32,4931.2+28,000
Purchase price of new boiler =352,931.20
Therefore the estimate of the purchase price for the new boiler will be 352,931.20
Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates: Machining Assembly Direct labor hours 16,000 12,000 Direct labor cost$20,000 $15,000 Machine-hours5,000 1,000 Manufacturing overhead$25,000 $30,000 What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively
Answer and Explanation:
The computation of the predetermined overhead rate for both the departments is shown below:
Predetermined overhead Rates for Machining Department
= $25,000 ÷ 5,000
= $5 per machine hour
And, Predetermined overhead Rates for Assembly Department
= $30,000 ÷ 15,000
= 200% of direct labor cost
Hence, the two are the above answers and the same is to be considered
company produces a single product. Last year, fixed manufacturing overhead was $30,000, variable production costs were $48,000, fixed selling and administration costs were $20,000, and variable selling administrative expenses were $9,600. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of $40 per unit. Under variable costing, net operating income would be: A. a profit of $6,000.B. a profit of $4,000.C. a loss of $2,000.D. a loss of $4,400.
Answer:
net operating income= (2,000)
Explanation:
First, we need to calculate the unitary variable production cost:
unitary variable production cost= 48,000/3,000= $16
Contribution margin income statement:
Sales= 2,400*40= 96,000
Variable cost= (2,400*16) + 9,600= (48,000)
Contribution margin= 48,000
Fixed manufacturing overhead= (30,000)
Fixed selling and administration costs= (20,000)
net operating income= (2,000)
Required information Problem 4-33 (LO 4-1) (Algo) [The following information applies to the questions displayed below.] Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai’s employer called and offered him $525 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $420. If Nitai works over the weekend, he will have to pay the $420 to have his car repaired, but he will earn $525. Assume Nitai’s marginal tax rate is 12 percent rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Problem 4-33 Part-a (Algo) a-1. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is not deductible? Work Repair a-2. Given the answer in a-1 above, by how much is Nitai better or worse off?
Answer:
a-1. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is not deductible?
Worka-2. Given the answer in a-1 above, by how much is Nitai better or worse off?
If Natia works during the weekend, he will have $42 more than if he repairs his car.Explanation:
additional revenue generated by working on weekend = $525 x (1 - 12%) = $462
cost of repairing the car at Autofix = $420
net benefit of working during the weekend = additional revenue - cost of repairing the car at Autofix = $462 - $420 = $42
Presented below is information related to Windsor Company at December 31, 2020, the end of its first year of operations.
Sales revenue $333,190
Cost of goods sold 138,130
Selling and administrative expenses 50,100
Gain on sale of plant assets 28,720
Unrealized gain on available-for-sale debt investments 10,340
Interest expense 6,350
Loss on discontinued operations 13,060
Dividends declared and paid 4,950
Compute the following:________.a) Income from operations b) Net Income c) Net income from attributable to Viel Company's controlling shareholds d) Comprehensive income e) Retained earnings balance at December 31, 2014
Answer:
(A) $144,960
(B) $109,890
(C) $107,170
(D) $102,220
Explanation:
(A) The income from operation can be calculated as follows
= Sales - cost of good sold -selling and administrative expenses
= $333,190-$138,130-$50,100
= $144,960
(B) The net income can be calculated as follows
= Sales - gain in sales of plant assets -cost of good sold-selling and administrative expense - interest expenses
= $333,190-28,720-138,130-50,100-6,350
= $109,890
(C) The comprehensive income can be calculated as follows
= Net income + unrealized gain on available for sale investment -loss in discontinued operation
= $109,890+ $10,340-$13,060
= $107,170
(D) The retained earnings balance at December 31, 2014 can be calculated as follows
= comprehensive income - Dividend declared and paid
= $107,170 - $4950
= $102,220
RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7x Return on assets (ROA) 7% Return on equity (ROE) 13% Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. % Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places.
Answer:
4.12%46.15%Explanation:
1. The Return on Assets can be calculated by;
Return on assets = Profit margin * Assets turnover
So,
Profit Margin = Return on Assets/ Assets Turnover
= 7%/1.7
= 4.12%
2. The amount of debt in the company is the capital less equity and the Percent of Equity in the company is;
= Return on Assets / Return on Equity
= 7% / 13%
= 53.85%
Debt - to - Capital = 1 - 53.85%
= 46.15%
Drying times for newly painted microwave oven cabinets are normally distributed with a mean of 2.5 minutes and a standard deviation of 0.25 minutes. After painting, each cabinet is mated with its electronic modules and mechanical components. The production manager must decide how much time to allow after painting before these other components are installed. If the time is too short, the paint will smudge and the unit will have to be refinished. If the time is too long, production efficiency will suffer. A consultant has concluded that the time delay should be just enough to allow 99.8% of the cabinets to dry completely, with just 0.2% ending up being smudged and sent back for refinishing. Given this information, for what time setting should the production manager set the automatic timer that pauses the production line while each cabinet dries?
Answer: 3.22
Explanation:
Given that;
mean = 2.5 min
standard deviation = 0.25 min
now to get the value of X required, we say
z = (x - u) / a
where z is the distance from the mean measured in the standard deviation units, x is the value we are interested in, u is the mean distribution, a is the standard deviation of the distribution.
the time delay should be just enough to allow 99.8% of the cabinets to dry completely = 99.8/100 = 0.9980
first we determine an appropriate z value.
Using the standardized normal tables,
value of z for approximately 0.9980 is 2.88
so using our initial equation z = (x - u) / a
we substitute the value
z = (x - u) / a
2.88 = ( x - 2.5) / 0.25
2.88 * 0.25 = x - 2.5
0.72 = x - 2.5
x = 0.72 + 2.5
x = 3.22
4. If you were a technical designer, what other positions could you pursue?
Luther owns a bakery. He has been trying to obtain a long-term contact with the owner of Martha’s Tea Salons for some time. Luther starts a local advertising campaign on radio and television and in the newspaper. This advertising campaign is so persuasive that Martha decides to break the contract she has had with Harley’s Bakery so that she can patronize Luther’s bakery. Is Luther liable to Harley’s Baker for the tort of wrongful interference with a contractual relationship? Is Martha liable for this tort? Explain each part fully and completely.
Answer:
The full description of the particular circumstance is listed underneath in the overview section.
Explanation:
Throughout the one side, as either a consequence of getting fathomed their deal, I have seen whether it could be Luther's mistake and therefore tried repeatedly to be doing the promotions that may be thought of as unfair intervention, but it does not mean that he did so to mess with their deal when he could have simply considered mischievously promoting. As either a consequence of the positioning of these commercials, he undoubtedly planned to intervene legitimately with the mere truth of comprehension of the deal. Because Martha as well as Harley seems to have a deal, as a direct consequence of maintaining a long-term partnership within the deal, Martha may be the controller responsible for the unjust personal behavior, and Martha just skits the service agreement as something of a consequence of loving the advertisements.I wouldn’t believe they would always keep Martha accountable for anything although she might using the justification that religion gave her a more comprehensive bargain that is fair to justify unjust action. There seem to be no separate offenses whereby Harley can use for her protection, such as aggravated assault or slander.