Answer:
I used an excel spreadsheet to calculate this:
the least squares regression line:
y = a + bx
y = $2,752 + 3.87x
where y = total cash wash costs and x = rental returns
fixed costs = $2,752 per month
variable cost = $3.87 per car washed
Wetzel Company has the following accounts and balances at the end of the fiscal year: Long−Term Notes Payable $150,000 Accounts Receivable $30,000 Accounts Payable $41,000 Building $55,000 Cash and Cash Equivalents $38,000 Salaries Expense $20,500 Common Stock $22,000 Interest Payable $4,500 Land $43,000 Short−term Investments $30,000 Income Taxes Payable $10,000 Equipment $59,500 Supplies $25,000 Service Revenue $99,000 Supplies Expense $38,000 Utilities Expense $28,500 Income Tax Expense $25,000 What is the total amount of liabilities at the end of the year?
Answer:
$205,500
Explanation:
The computation of the total amount of liabilities at the end of the year is shown below:-
The Total amount of liabilities at the end of the year is
= Long−Term Notes Payable + Accounts payable + Interest payable + Income tax payable
= $150,000 + $41,000 + $4,500 + $10,000
= $205,500
Therefore for computing the total amount of liabilities at the end of the year we simply applied the above formula.
Item8 Time Remaining 37 minutes 54 seconds00:37:54 Item 8Item 8 Time Remaining 37 minutes 54 seconds00:37:54 Which of the following statements is true of pay ranges? Multiple Choice They usually lead to an increase in employee turnover. They are flexible enough to deal with differences in quality but not with the productivity or value of these quality variations. They reflect the differences in performance or experience that an employer wishes to recognize with pay. They cause employees to believe that their compensation cannot increase in the same job.
Answer:
They reflect the differences in performance or experience that an employer wishes to recognize with pay.
Explanation:
A pay range is a boundary that sets the minimum and maximum amount of a specific pay grade.
In content marketing, organizations develop media content to attract audiences and interact with publics. The goal is to make it interesting and engaging enough that people will seek it, consume it, and share it for its own information or entertainment value rather than see it as an interruption to some other media experience. Which is the best example of this kind of media content? Group of answer choices
Answer:
The correct answer will be "EARNED ".
Explanation:
Earned media is where certain content or information is presented by consumers, the viewing public as well as press, chat by recommendations from friends regarding your business, and sometimes even highlight your business. In several other cases, the references are "earned," implying that people gladly give themselves.6.
Question 6
Please state which of the below concepts describe how well a market offering fulfills customer needs.
1 point
Brand feelings
Brand imagery
Brand salience
Brand performance
Answer:
Brand performance
Explanation:
Brand performance is the concept that compares and contrasts the goals a brand sets and how it meets those targets.
Therefore, brand performance is the concept that describe how well a market fulfills customers needs.
The answer is D
The following information has been taken from the ledger accounts of Bridgeport Corporation.
Total income since incorporation $292,000
Total cash dividends paid 55,000
Total value of stock dividends distributed 31,000
Gains on treasury stock transactions 16,000
Unamortized discount on bonds payable 29,000
Determine the current balance of retained earnings.
Answer:current balance of retained earnings=$206,000
Explanation:
Net Retained Earnings = Total Income since Incorporation−
Total Cash Dividend Paid− Value of Stock Dividend distributed
Where
cash dividends distributed among the stakeholders= $55,000
value of stock dividends distributed = $31,000
Total Dividend Distributed = $86,000
Net Retained Earnings = $292,000 -($86,000)=$206,000
When the Segway Human Transporter was introduced in 2002, many people expected the product to be a phenomenal success. While the Segway is still on the market, it has never been the success so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant technologically, seemed impractical to most people since it could not be used to replace their current method of transportation. In other words, the Segway had problems with:
Answer:
compatibility
Explanation:
In marketing, compatibility refers to how well a product or service matches the markets' values, expectations and needs. Will customers accept the new product or service and use it, or they will not.
A great example of lack of compatibility is the tablet sold by Microsoft in year 2000. It was a financial disaster and really few people even know that the product was offered and even less people actually ever bought it. Customers had no use for tablets in year 2000, but magically Steve Jobs sold millions a few years later. One might think that Apple products are superlative compared to Microsoft's products, but that isn't enough to explain such a failure.
Steve Jobs believed that customers didn't know what they needed, and if you offered a good enough product, they would like it, buy it and use it. Of course, the product that you are selling must be able to satisfy your customers' needs, even if they didn't realize it at first.
But Microsoft struggled to show their customers (in year 2000 Microsoft was the largest company in the world) that they could actually use their tablets to satisfy some type of need. If a company's customers do not realize that a product will satisfy some type of need, they are not going to buy it.
The same happened here. The segway was supposed to be a great innovation, and if the company had done things correctly it probably could have been. The problem with the segway is that it was meant to replace walking, and for short distances really. It was based on the same logic as a remote control for a TV, only that customers never realized it that way.
Jim borrowed 10,000 from Bank X at an annual effective rate of 8%. He agreed to repay the bank with 5 level annual installments at the end of each year. At the same time, he also borrowed 15,000 from bank Y at an annual effective rate of 7.5%. He agreed to pay the bank this loan with 5 level annual installments at the end of each year. He lent the 25,000 to Wayne immediate in exchange for 4 annual level repayments at the end of each year, at an annual effective rate of 8.5%. Jim can only reinvest the proceeds at an annual effective rate of 6%. Immediately after repaying the loans to the banks in full, determine how much Jim has left.
Answer:
$373.43
Explanation:
the cash outflows associated to the first loan are 5 level payments of $2,504.56 each (= $10,000 / 3.992717 PV annuity factor, 8%, 5 periods).
the cash outflows associated to the second loan are 5 level payments of $3,707.47 each (= $15,000 / 4.048857 PV annuity factor, 7.5%, 5 periods).
total cash outflows associated to both loans = $6,212.03
inflows associated with investment are 4 level payments of $7,632.20 each (= $25,000 / 3.275596 PV annuity factor, 8.5%, 4 periods).
net cash flow year 1 = $7,632.20 - $6,212.03 = $1,420.17
net cash flow year 2 = $7,632.20 - $6,212.03 + ($1,420.17 x 1.06) = $2,925.55
net cash flow year 3 = $7,632.20 - $6,212.03 + ($2,925.55 x 1.06) = $4,521.25
net cash flow year 4 = $7,632.20 - $6,212.03 + ($4,521.25 x 1.06) = $6,212.70
net cash flow year 5 = ($6,212.70 x 1.06) - $6,212.03 = $373.43
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income.Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations.Click here to access the 2018 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%.When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar.a. If Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $40,000 deduction for qualified business income ($200,000 × 20%).Kirsten's taxable income is $148,000 and her after-tax income is _____b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.Note: Individual taxpayers received preferential treatment regarding the taxation of qualified dividends (0%,15%,20%). For single taxpayers, the 0 percent rate applies to the first $38,600 of taxable income.Purple Corporation's after-tax income is $158,000 and Kristen's after tax income is _____c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000.Kirsten's after-tax income is _____
Answer:
a. Kristen's taxable income = $148,000
her tax liability:
($38,700 - $9,525) x 12% = $3,501
($82,500 - $38,701) x 22% = $9,635.78
($148,000 - $82,501) x 24% = $15,719.76
total = $28,856.54
Kristen's after tax income = $200,000 - $28,856.54 = $171,143.46
b. Purple's corporate tax liability = $200,000 x 21% = $42,000
Purple's after tax income = ($200,000 - $42,000) = $158,000
Kristen's taxable income is $146,000 (qualified dividends are included in AGI but taxed at different rate), her tax rate will be 15%. Kristen's after tax income = $158,000 - ($146,000 x 15%) = $136,100
c. Kristen's tax liability on ordinary income ($158,000) = $28,376.54
Kristen's tax liability on qualified dividends = ($42,000 x 0.79) x 15% = $4,977
total tax liability = $33,353.54
Kristen's after tax income = $158,000 + $33,180 - $33,353.54 = $157,826.46
You would be making a wise decision if you chose to:________.
a. base decisions regarding investments on effective rates and base decisions regarding loans on annual percentage rates.
b. assume all loans and investments are based on simple interest.
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
d. invest in an account paying 6 percent, compounded quarterly, rather than an account paying 6 percent, compounded monthly.
e. ignore the effective rates and concentrate on the annual percentage rates for all transactions.
Answer:
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
Explanation:
In the above scenario it will be a good financial decision to choose a loan with lower effective rate than the one with lower percentage rate.
Effective rate is defined as the real interest rate on a loan or the actual amount that is to be repaid annually on a loan. It gives a truer picture of cost of borrowing money.
Percentage rate is interest paid on a loan expressed as a percentage of the total amount collected. It usually includes various fees and charges collected by the lender. So it is not a true reflection of the cost of borrowing
Answer:
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
Explanation:
The effective annual rate is the actual rate of interest that you will have to paid on the loan. The effective annual rate takes into account the compounding interest over the loan's period of time.
An annual percentage rate can be either nominal (without taking compounding into account), or effective. For this reason, to make sure that you are making the most rational decision, you should take the loan with the lower effective annual rate, because the lower annual percentage rate may be either nominal or effective.
Booth's fixed assets were used to only 50% of capacity during 2018, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 8% and its payout ratio to be 30%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
Answer:
AFN = $138
Explanation:
the accounts and balances are missing, so I looked for a similar question:
The Booth Company's sales are forecasted to double from $1,000 in 2010 to $2,000 in 2011. Here is the December 31, 2010, balance sheet:
Cash $ 100 Accounts payable $ 50
Accounts receivable 200 Notes payable 150
Inventories 200 Accruals 50
Net fixed assets 500 Long-term debt 400
Common stock 100
Retained earnings 250
Total assets $1000 Total liabilities and equity $1000
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
A/S: $500 / $1,000 = 0.50 ΔSales = $1,000 L/S = $250 / $1,000 = 0.25PM = 0.08 FS = $2,000 1 - d = 1 - 30% = 0.70AFN = (0.5 x $1,000) - (0.25 x $1,000) - (0.08 x $2,000 x 0.7) = $500 - $250 - $112 = $138
1 Cash on hand at the company and not yet deposited at the bank. 6,400 2 EFT for monthly utility bill not yet recorded by the company. 1,700 3 Note collected by the bank and not yet recorded by the company. 10,200 4 Interest collected by the bank from note in #3 not yet recorded by the company. 1,300 5 A check witten for insurance expense for $90 was cashed. The check was recorded on the books for $160. ? 6 Checks written by the company but not yet processed by the bank. 2,600 7 Service fee charged by bank but not yet recorded by the company. 100 8 Customer checks determined by the bank to have nonsufficient funds. 3,000 Bank balance at the end of the period. 16,750 Company balance at the end of the period. 13,780 Required: 1-a. What is the revised Cash balance at the end of the period?
Answer:
$20,550
Explanation:
A Bank reconciliation should be done to determine the accuracy of the cash balance and this is done through the following steps ;
First, Update the Cash Book Balance as Follows
Cash Book (Bank Balances Only)
Debit :
Balance (unadjusted) $13,780
Note Receivable $10,200
Interest on Note $1,300
Correction : insurance expense $70
Totals $25,350
Credit ;
Utilities Expense $1,700
Service fee $100
Dishonored Cheques $3,000
Balance (adjusted) $20,550
Totals $25,350
Then, Prepare a Bank Reconciliation Statement
Bank Reconciliation Statement
Balance as per Bank Statement $16,750
Add Lodgements not yet credited $6,400
Less Unpresented Cheques ($2,600)
Balance as per Cash Book $20,550
Conclusion :
The Cash Balance as per updated Cash book is now $20,550. This is the same as the cash balance on our bank reconciliation statement of $20,550. Thus the $20,550 is the accurate cash balance at the end of the period.
The revised cash balance at the end of the period is = $20,550
Prepare a Bank Reconciliation StatementWhen A Bank reconciliation should be done to determine the accuracy of the cash balance and this is done through the following steps are:
Firstly, We Update the Cash Book Balance as Follows is:
Cash Book (Bank Balances Only)
Debit :
Balance (unadjusted) $13,780
Note Receivable $10,200
Interest on Note $1,300
Correction : insurance expense $70
Totals $25,350
Credit ;
Utilities Expense $1,700
Service fee $100
Dishonored Cheques $3,000
Balance (adjusted) $20,550
Totals $25,350
Then, Prepare a Bank Reconciliation Statement (BRS)
The Bank Reconciliation Statement
Balance as per Bank Statement $16,750
Then Add Lodgement not yet credited $6,400
After that Less Unpresented Cheques ($2,600)
Therefore, Balance as per Cash Book $20,550
In the Conclusion: The Cash Balance as per the updated Cashbook is now $20,550. This is the exact cash balance on our bank reconciliation statement of $20,550. Therefore the $20,550 is the correct cash balance at the end of the period.
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Annually, Monet Corp. awards each of its employees two weeks of paid vacation, which can be carried over if not used. As of December 31, Year 1, the company determined that there are 20 vacation weeks eligible for carryover. During Year 1, compensation averaged $1,000 per week. That average compensation amount is expected to increase to $1,030 during Year 2 when that vacation time will be taken. What is the liability that should be reported for vacation pay in the company’s balance sheet prepared as of December 31, Year 1?
Answer:
$20,000
Explanation:
Calculation for the liability that should be reported for vacation pay
Using this formula
Liability=Vacation weeks*Compensation averaged per week for Year 1
Let plug in the formula
Liability=20 weeks × $1,000 per week
Liability = $20,000
Therefore the amount of liability that should be reported for vacation pay will be $20,000
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.00 $52 Normal economy 1.40 44 Recession .70 34 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return 9.78 % Standard deviation 17.32 % b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 3%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer:
a.
expected holding returns:
boom = [($50 + $2) - $40] / $40 = 30%
normal = [($44 + $1.40) - $40] / $40 = 13.5%
recession = [($34 + $0.70) - $40] / $40 = -13.25%
expected return = (30% x 1/3) + (13.5% x 1/3) - (13.25% x 1/3) = 0.1 + 0.045 - 0.044 = 0.101 = 10.1%
variance = 1/3(30 - 10.1)² + 1/3(13.5 - 10.1)² + 1/3(-13.25 - 10.1)² = 132 + 3.85 + 181.74 = 317.59
standard deviation = √317.59 = 17.82%
b.
expected holding returns:
boom = [($50 + $2) - $40] / $40 = 30%
normal = [($44 + $1.40) - $40] / $40 = 13.5%
recession = [($34 + $0.70) - $40] / $40 = -13.25%
T-bills = 3%
expected return = (30% x 1/6) + (13.5% x 1/6) - (13.25% x 1/6) + (3% x 1/2) = 0.05 + 0.0225 - 0.022 + 0.015 = 0.0655 = 6.55%
variance = 1/6(30 - 6.55)² + 1/6(13.5 - 6.55)² + 1/6(-13.25 - 6.55)² + 1/2(3 - 6.55)² = 91.65 + 8.05 + 65.34 + 6.30 = 171.35
standard deviation = √171.35 = 13.09%
Explanation:
Dividend Stock Price
Boom $2.00 $52
Normal economy $1.40 $44
Recession $0.70 $34
For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to stay in business. In the face of increasing competition, Swen has tried several tactics: aggressively promoting price-slashing sales to drive his competitors' customers to his doors; attempting to cut costs by leveling out sales and inventory through seasonal sales; as well as lining up contracts with wholesalers in advance of seasonal rushes (e.g., summer swimwear) to prevent inventory depletion. He has even recruited the president of the chamber of commerce to sit on his board. None of these tactics have been successful. Now, Swen is considering a deviation from his current business to one that might be more suitable, perhaps a formal wear/tuxedo rental and retail shop or a boutique Western wear store. Swen is using _____ as his final tactic.
Answer:
Swen is using product/service repositioning strategy.
Explanation:
Product Repositioning simply refers to the art of altering the target markets perception of one's product and or services.
Swen is still in the clothing business. He has only changed the way he delivers it to the target consumers.
Of course, this sometimes calls for a change in product mix (which refers to altering the type of products being offered). However, the central idea of the strategy still holds as customers now see the business differently.
This type of strategy is easier to pull off for start-ups, or unpopular businesses trying to make a comeback. Where the business is a well-established brand, it can prove extremely difficult and may be costly.
Cheers.
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows: ($ in millions) Net Sales Beginning Accounts Receivable Ending Accounts Receivable Sun Health $ 3,630 $ 300 $ 287 Select Medical 3,940 499 438 Required: 1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. (Round Average accounts receivable to 1 decimal place. Enter your answers in millions.)
Answer and Explanation:
The computation of receivables turnover ratio and average collection period for Sun Health and Select Medical is shown below:-
For Sun health
Accounts Receivables Turnover Ratio = Net Sales ÷ Average Accounts Receivables
= Net Sales ÷ ((Accounts Receivables at the beginning + Accounts Receivables at the end) ÷ 2)
= $3,630 ÷ (($300 + $287) ÷ 2)
= $3,630 ÷ 293.5
= 12.4 times
Average Collection Period = Number of days in a year ÷ Accounts Receivables Turnover Ratio
= 365 ÷ 12.37 times
= 29.5 days
For Sun medical
Accounts Receivables Turnover Ratio = Net Sales ÷ Average Accounts Receivables
= Net Sales ÷ ((Accounts Receivables at the beginning + Accounts Receivables at the end) ÷ 2)
= $3,940 ÷ (($499 + $438) ÷ 2)
= $3,940 ÷ 468.5
= 8.4 times
Average Collection Period = Number of days in a year ÷ Accounts Receivables Turnover Ratio
= 365 ÷ 8.41 times
= 43.4 days
Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.1 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Answer:
Interest expense $13,100,000
Explanation:
The computation of the interest expense is shown below:
EBIT $37,100,000 (a)
Less: Interest expense $13,100,000 (a - c)
EBT($18,000,000 ÷ 0.75) $24,000,000 (c)
Less: Taxes $6,000,000 (c - e)
Net income $18,000,000 (e)
In this way the interest expense is computed
hence, the interest expense is $13,100,000
3. What is the opportunity cost of our military spending?
Answer:
Today SIPRI estimated that global military expenditure in 2015 was $1676 billion, about 2.3% of the world's total Gross Domestic Product (GDP). Such high levels of spending frequently raise concerns as to the 'opportunity cost' involved in military spending—the potential civilian uses of such resources that are lost.
Explanation:
Hope this helps. Have a nice day!
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:
Accounts Debit Credit
Cash $12,000
Accounts receivable 159,000
Prepaid rent 7,000
Supplies 28,000
Equipment 350,000
Accumulated depreciation $128,000
Accounts payable 12,000
Salaries payable 3,100
Interest payable 1,400
Notes payable (due in two years) 31,000
Common stock 230,000
Retained earnings 140,500
Dividends 27,000
Service revenue 380,000
Salaries expense 180,000
Advertising expense 77,000
Rent expense 15,000
Depreciation expense 33,000
Interest expense 3,000
Utilities expense 35,000
Totals $ 926,000 $ 926,000
Prepare an income statement for China Tea Company for the year ended December 31, 2021:
Answer:
China Tea Company
Income statement for the year ended December 31, 2021:
$
Service revenue 380,000
Less Expenses :
Salaries expense 180,000
Advertising expense 77,000
Rent expense 15,000
Depreciation expense 33,000
Interest expense 3,000
Utilities expense 35,000 (343,000)
Net Income / (loss) 37,000
Explanation:
Net Income shows the Profit or Loss from Operating Activities during the Reporting Period.
The Items found in it comprise of Revenues/Income, Expenses and Profit/Loss.
Profit/ Loss = Sales - Expenses
Hughes Corporation is considering replacing a machine used in the manufacturing process with a new, more efficient model. The purchase price of the new machine is $150,000 and the old machine can be sold for $100,000. Output for the two machines is identical; they will both be used to produce the same amount of product for five years. However, the annual operating costs of the old machine are $18,000 compared to $10,000 for the new machine. Also, the new machine has a salvage value of $25,000, but the old machine will be worthless at the end of the five years. You are deciding whether the company should sell the old machine and purchase the new model. You have determined that an 8% rate properly reflects the time value of money in this situation and that all operating costs are paid at the end of the year. For this initial comparison you ignore the effect of the decision on income taxes. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. What is the incremental cash outflow required to acquire the new machine
Answer:
50,000
Explanation:
Hughes Corporation can calculate the incremental cash outflow required to acquire the new machine by just deducting the sales proceeds from the cost of the new machine.
DATA
New machine = $150,000
Old machine = 100,000
Cash outflow per year (18,000 - 10,000) = 8,000
Salvage value = 25,000
Annuity factor = 8%
Solution
Incremental Cash outflow = Cost of new machine - Sales proceeds from old machine
Incrementa Cash outflow = 150,000 - 100,000
Incremental Cash outflow = $50,000
1. What recommendations would you make to Jim to help him improve the financial
performance of Wave Riders in the future? Prepare a memo to Jim outlining your
recommendations, making certain to include your reasons for the recommendation
(i.e. ratio analysis and/or comparisons to industry ratios
Answer:
Hello your question is incomplete below is the complete question
Jim Connor is the owner of Wave Riders, a surf shop located in West Palm Beach, Florida. Jim has just received his end of the year financial statements from his accountant. When he sees his gross and net income he is dismayed. With almost $250,000 in gross profit he just doesn’t understand why he is always short on cash to pay his employees and suppliers. One of his largest suppliers of surf boards notified him just last month that they would no longer extend him credit and he would have to pre-pay all of his orders. He puts a call into his accountant to set up a meeting with her to discuss the financial health of his business
Average inventory turnover ratio : Wave riders = 2.5 , Industry = 6.85 ( as calculated )
answer: The recommendations that should be made to Jim to help him improve the company's financial performance is, Jim should work on selling off his old inventories before ordering more
Explanation:
The recommendations that should be made to Jim to help him improve the company's financial performance is, Jim should work on selling off his old inventories before ordering more, this is because The Average inventory turnover ratio for Waveriders is lower than the Industry's Average inventory turnover ratio. and this is caused by inadequate inventory management ( overstocking or low sales ) and this is affecting The financials of Waveriders
As per the recommendations that are made to Jim inorder to improve his performance he should work on selling his old inventories.
What are inventories?Inventories are the stocks that refer to goods and materials that businesses hold for the ultimate goals of resales, production, and utilization.
The recommendations that need to be made to Jim are that he should first sell the old inventories before taking the new ones.
Per average inventory turnover the ratio for the Waveriders is lower than the Industry's Average inventory turnover ratio.
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Garret Company has provided the following selected information for the year ended December 31, 2016: Cash collected from customers was $790,000. Cash received from stockholders in exchange for common stock totaled $90,000. Cash paid to suppliers was $380,000. Cash paid to employees was $220,000. Cash to stockholders for dividends was $54,000. Cash received from sale of a building was $300,000. Cash paid for store rent was $40,000. Cash received for interest and dividends was $6,000. Cash paid for income taxes was $45,000. Based on the selected information provided, how much was Garret's cash flow from operating activities
Answer: $111,000
Explanation:
Based on the selected information provided, Garret's cash flow from operating activities will be:
Cash collected from customers = $790,000
Less: Cash paid to suppliers = $380,000.
Less: Cash paid to employees = $220,000.
Less: Cash paid for store rent = $40,000.
Add: Cash received for interest and dividends = $6,000.
Less: Cash paid for income taxes = $45,000.
Total = $111000
Garret's cash flow from operating activities will be $111000
The following transactions are July activities of Bill's Extreme Bowling, Inc, which operates several bowling centers.
a. Bill's collected $17,400 from customers for services related to games played in July.
b. Bil's billed a customer for $330 for a party held at the center on the last day of July. The bill is to be paid in August
c. The men's and women's bowling leagues gave Bil's advance payments totaling $3.100 for the fall season that starts in September
d. Bil's received $1,350 from credit sales made to customers last month (in June).
e. Bil's paid $2,100 to plumbers for repairing a broken pipe in the restrooms.
f. Bill's paid $2,650 for the June electricity bill and received the July bill for $3.100, which will be paid in August
g. Bl's paid $5,895 to employees for work in July
Required:
1. Prepare an income statement for Bilr's Extreme Bowling, Inc., for the month ended July 31. (This income statement would be considered preliminary because it uses unadjusted balances.) BILL'S EXTREME BOWLING, INC Income Statement
2. What s the company's net profs margin, expressed as a percent (Round your answer to 1 decimal place.) let Profit
Answer:
BILL'S EXTREME BOWLING INC
1. Income Statement
For the month ended July 31:
Service Revenue $17,730
less Expenses:
Plumbing Repairs $2,100
Electricity 3,100
Salaries 5,895
Total expenses $11,095
Net Profit $6,635
2. Net Profit margin = Net Profit divided by Service Revenue * 100
= $6,635/$17,730 * 100
= 37.4%
Explanation:
1) Data and Calculations:
Service Revenue:
a. Games = $17,400
b. Party = 330
Total revenue $17,730
Expenses:
e. Plumbing = $2,100
f. Electricity = 3,100
g. Salaries = 5,895
Total expenses $11,095
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2014, the following estimates were made for the year. Department D E K Manufacturing overhead $1,200,000 $1,500,000 $900,000 Direct labor costs $1,500,000 $1,250,000 $450,000 Direct labor hours 100,000 125,000 40,000 Machine hours 400,000 500,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used $140,000 $126,000 $78,000 Direct labor costs $120,000 $110,000 $37,500 Manufacturing overhead incurred $ 99,000 $124,000 $79,000 Direct labor hours 8,000 11,000 3,500 Machine hours 34,000 45,000 10,400 Instructions
(a) Compute the predetermined overhead rate for each department.
(b) Compute the total manufacturing costs assigned to jobs in January in each department.
(c) Compute the under- or overapplied overhead for each department at January 31.
Answer:
Agassi Company
Department D E K
a) Predetermined overhead rate $0.80 $1.20 $7.50
b) Total manufacturing costs assigned to jobs in each department:
Department D E K
Direct materials used $140,000 $126,000 $78,000
Direct labor costs $120,000 $110,000 $37,500
Manufacturing overhead
applied $ 96,000 $13,200 $78,000
Total manufacturing costs $356,000 $249,200 $193,500
c) Under-or overapplied overhead for each department:
Department D E K
Manufacturing overhead
incurred $ 99,000 $124,000 $79,000
Manufacturing overhead
applied $ 96,000 $13,200 $78,000
Under-applied $3,000 $110,800 $1,000
Explanation:
a) Data and Calculations:
Estimates:
Department D E K
Manufacturing overhead $1,200,000 $1,500,000 $900,000
Direct labor costs $1,500,000 $1,250,000 $450,000
Direct labor hours 100,000 125,000 40,000
Machine hours 400,000 500,000 120,000
Application of overhead
Department D = Direct labor cost
Department E = Direct labor hours
Department K = Machine hours
Department D E K
Overhead application rate $0.80 $1.20 $7.50
January actual cost data:
Department D E K
Direct materials used $140,000 $126,000 $78,000
Direct labor costs $120,000 $110,000 $37,500
Manufacturing overhead
incurred $ 99,000 $124,000 $79,000
Direct labor hours 8,000 11,000 3,500
Machine hours 34,000 45,000 10,400
Overhead applied:
Department D = Overhead rate * direct labor costs
= $0.80 * $120,000
= $96,000
Department E = Overhead rate * direct labor hours
= $1.20 * 11,000
= $13,200
Department K = Overhead rate * machine hours
= $7.50 * 10,400
= $26,250
On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2021. The following additional facts pertain to the transaction:
The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations.
The book value of Footwear's assets totaled $48 million on the date of the sale.
Footwear's operating income was a pre-tax loss of $10 million in 2021.
Foxtrot's income tax rate is 25%.
In the income statement for the year ended December 31, 2021, Foxtrot Co. would report:______.
A. Income taxes separated for continuing and discontinued operations.
B. Income taxes reported for income and gains only.
C. All income taxes combined into one line item.
D. None of these answer choices are correct.
Answer: Income taxes separated for continuing and discontinued operations
Explanation:
the income statement for the year ended December 31, 2021, Foxtrot Co. would report income taxes separated for continuing and discontinued operations.
Discontinued operations are a segment of the core business of a company which has been shut down or in certain situations divested and are separately reported on the income statement of the company from the continuing operations.
The reason why discontinued operations have to be listed separately is to enable investors to differentiate between profits from continuing operations and the activities that aren't functioning anymore.
nformation taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year 1 7% debentures, $300 million face value, due Year 11, effective rate $14.6% $ 188.6 $ 182.7 Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0% 267.9 239.2 Participating mortgages, $850 million face value, due Year 5, effective rate 8.7%, collateralized by Sears Tower and related properties 834.5 833.9 Various other long-term debt 12,444.2 16,329.2 Total long-term debt $ 13,735.2 $ 17,585.0 Required: How much interest expense did the company record during Year 2 on the 7% debentures
Answer:
The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600
Explanation:
As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.
We can calculate the Interest expense on 7% debtures as below
Interest Expense = Value of Debenture x Effective interest rate
Interest Expense = $188,600,000 x 14.6%
Interest Expense = $27,535,600
What are the characteristics of a free market economy??
Susanne is interested in saving time when she is making programmed decisions at
work. Which of the following she should focus on?
O Systematically go through the six steps of the decision-making process no
Satisficing
Talk to other people
Be creative
Answer: Systematically go through the six steps of the decision-making process
Explanation:
Programmed decisions are routine and repetitive. In other words, these are decisions that one need not think about as they require and follow the same procedure in making them.
By systematically going through the six steps of the decision-making process, Susanne will save time as the process makes decision making programmable. By following the steps systematically, she would be making programmed decisions as they follow the same steps and therefore making them faster.
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 5% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)
Answer and Explanation:
The Journal entries are shown below:-
1. Right of use assets Dr, $371,049
To Lease payable $371,049
(Being lease is recorded)
Working note:-
Present value of periodic lease payment $354,595
($100,000 × (present value of ordinary annuity of $1, n = 4, i = 5%)
($100,000 × 3.54595)
Present value of an estimated cash payment under a residual value
$16,454 (Present value $1, n = 4, i = 5%)
Lease payment = $354,595 + $16,454
= $371,049
2. Amortization expense Dr, ($371,049 ÷ 4 years) $97,262
To Right of use assets $97,262
(Being related to the lease is recorded)
3. Interest expense Dr, (5% × $371,049) $18,552
Lease payable Dr, $81,448
To annual payment of cash $100,000
(Being annual payment of lease is recorded)
What is an example of a global strategy?
A. McDonald's in Vietnam offering McPork sandwiches specifically for Vietnam consumers
B. Consumer electronics companies developing different marketing strategies for different foreign markets
C. Starbucks standardizing its products across the United States and other countries
D. General Motors creating electric vehicles specifically for the Chinese market
E .International fast food chains refraining from using pork or beef only in the Indian market
Answer:
Seems like it's c
Explanation:
Just because it's the only logical one mentioning other countries and the united states
Life, Inc. experienced the following events in Year 1, its first year of operation: Performed counseling services for $26,800 cash. On February 1, Year 1, paid $18,600 cash to rent office space for the coming year. Adjusted the accounts to reflect the amount of rent used during the year. Required Based on this information alone: a. Record the events in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign.) b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. (In statement of cash flows, cash outflows should be indicated with a minus sign.) c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2?
Answer:
a. I divided the accounting equation in two parts:
Assets = Liabilities + Equity
Cash Prepaid rent
1) $26,800 0 0 $26,800
2) -$18,600 $18,600 0 0
3) 0 -$17,050 0 -$17,050
$8,200 $1,550 0 $9,750
Revenues - Expenses = Net income Type of cash flow
1) $26,800 0 $26,800 OA
2) 0 0 0 OA
3) 0 $17,050 -$17,050 OA
$26,800 $17,050 $9,750
b. Life, Inc.
Income Statement
For the year ended December 31, Year 1
Revenues $26,800
Expenses -$17,050
Net income $9,750
Life, Inc.
Balance Sheet
For the year ended December 31, Year 1
Assets:
Cash $8,200
Prepaid rent $1,550
Total assets = $9,750
Liabilities: $0
Equity: $9,750
Total assets and liabilities = $9,750
Life, Inc.
Statement of Cash Flows
For the year ended December 31, Year 1
Cash flows form operating activities:
Net income $9,750
Adjustments to net income:
Increase in prepaid rent ($1,550)
Cash flows from operating activities $8,200
Cash flows form investing activities $0
Cash flows form financing activities $0
Net increase in cash position $8,200
Initial cash balance $0
Ending cash balance $8,200
c. $1,550
