Answer:
Margin of safety= 150 untis
Margin of safety ratio= 15%
Explanation:
Giving the following information:
Selling price per unit $23
Variable expense per unit $15
Fixed expense per month $ 7,040
Unit sales per month 1,030
First, we need to calculate the break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 7,040 / (23 - 15)
Break-even point in units= 880
Now, the margin of safety in units and as a percentage:
Margin of safety= (current sales level - break-even point)
Margin of safety= 1,030 - 880
Margin of safety= 150 untis
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= 150/1,030
Margin of safety ratio= 0.146
Margin of safety ratio= 15%
Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct?
I. As the cost driver level increases, total fixed cost remains unchanged
II. As the cost driver level increases, unit fixed cost increases
III. As the cost driver level decreases, unit variable cost decreases
a. I, II and III are correct
b. I and II only are correct
c. I only is correct
d. II and III only are correct
Answer:
The answer is "Option C".
Explanation:
The Unit variable expenses should remain unchanged, paying no attention to what the price operator is doing. Both variable prices will remain constant, paying little attention to adjustments in the costing system, as adjustments in the costing system may not impact all fixed expenses.
Although full fixed costs will remain constant, paying special heed to changes in the cost engine, group fixed costs will not. Unless the amount of a costing system increases, all operating rates will continue as before, however, the full number of items will increase as well as the operating unit price will reduce.
Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery Service during May: Select the accounting equation elements (Assets, Liabilities, Owner's Equity) affected by the transaction. Then, in the "Direction" column, select the impact ("Increases" or "Decreases") on the accounting equation element. Lastly, select the specific account within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Owner's Equity (Katie Wyer, Capital) increases by $18,000.
Element Direction Item
1. Received cash from owner as additional investment, $18,000. Asset Owner's Equity Increases Increases Cash Katie Wyer, Capital
2. Paid advertising expense, $4,850. Liability Increases Katie Wyer, Capital
3. Purchased supplies on account, $2,100. Liability Decreases Accounts Receivable
4. Billed customers for delivery services on account, $14,700. Liability Increases Accounts Payable Liability Decreases Delivery Service Fees
5. Received cash from customers on account, $8,200. Asset Increases Cash Asset Increases Accounts Receivable
Answer:
1. Transaction: Received cash from owner as additional investment $18,000
Accounting equation element: Asset and Equity
Direction: Cash increases Equity increases
Account: Cash and Wyer capital
2. Transaction: Paid advertising expenses $4,850
Accounting equation element: Asset and equity
Direction: Cash decreases Equity decreases
Account: Cash and equity
3. Transaction: Purchase supplies on account $2,100
Accounting equation element: Asset and Liability
Direction: Asset increases Liability increases
Account: Supplies and Accounts payable
4. Transaction: Billed customers for delivery services on account $14,700
Accounting equation element: Asset and Equity
Direction: Asset increases Equity increases
Account: Accounts receivable and equity
5. Transaction: Received cash from customers on account $8,200
Accounting equation element: Asset and Asset
Direction: Cash increases and accounts receivable decreases
Account: Cash and accounts receivable
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.
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
The inflationary spiral explains the causes and effects of high inflation.
The spiral usually begins with an increase in demand. What is the direct effect of this increase?
a. Producers raise prices to continue to make a profit.
b. The government prints more money, lowering the value of money.
c. Workers negotiate with employers to receive more money.
d. Consumers need higher wages to keep up with rising prices.
Answer:
A. Producers raise prices to continue to make a profit.
Explanation:
The direct result of increase in demand is that the producers raise prices to continue to make a profit.
So, option a. is correct.
Inflationary spiralInflation is defined as a broad, gradual increase in the costs of goods and services in a market. An inflationary spiral starts when there is an increase in price, which leads to people requesting pay increases.
The inflationary spiral describes why and how high inflation occurs. Typically, the spiral begins with a rapid growth. The direct result of this increase is that the producers raise prices to continue to make a profit. So, option a. is correct.
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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
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
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
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.Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $719,000. Depreciation and amortization expense of $86,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $ 41,000 Increase in inventory 11,100 Increase in prepaid expenses 10,400 Increase in salaries payable 11,900 Decrease in income taxes payable 17,000 Required: Prepare the operating activities section of the 2021 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)
Answer and Explanation:
The preparation of the operating activities section is shown below:
Particulars Amount
Cash flow from operating activities
Net income for the fiscal year $719,000
Adjustment for non-cash effects:
Depreciation and amortization $86,000
Changes in operating assets and liabilities:
Add: Decrease in accounts receivable $41,000
Less: Increase in inventories ($11,100)
Less: Increase in prepaid expenses ($10,400)
Add: Increase in salary payable $11,900
Less: Decrease in income tax payable ($17,000)
Net cash flows from operating activities $819,400
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
On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the entity. By the end of the year, the assets have not been sold. The book value of those assets equals $850,000, and the company estimates their fair value to be $1,100,000. The component generated operating income of $450,000 for the year. In its income statement for the year ended December 31, 20X1, for what amount would the company report income from operations of a discontinued component (ignoring taxes).
a. $300,000b. $550,000c. $450,000d. $700,000
Answer: $450,000
Explanation:
There won't be gain or loss as asset haven't been sold. In its income statement for the year ended December 31, 20X1, the amount that would the company report income from operations of a discontinued component will be:
Profit or loss made on the sale of asset = $0
Income from discontinued operations = $450000
Therefore, the income from operations of a discontinued component will be:
= $0 + $450000
= $450,000
What are the characteristics of a free market economy??
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.
On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. entered into a lease agreement to rent out its old warehouse space it was no longer using. This agreement calls for Cedar to receive $10,000 per month from the lessee, due and payable at the end of the 5-month lease term. At December 31, 2021, none of the rental payments from the lessee had yet been received. If Cedar makes the appropriate adjusting entry, how much will be reported on the December 31, 2021 income statement for rent expense?
Answer: $324,000
Explanation:
Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.
The rent will therefore have to be apportioned to the months that it has paid for in the current period.
Rent for year = $432,000
Rent for month = 432,000/12 = $36,000
April - December = 9 months
Rent for the year = 9 * 36,000
= $324,000
Note; Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received.
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
During March, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of March and 190,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 50% complete with respect to labor. At the end of March, 27,000 additional units were in process in the production department and were 100% complete with respect to materials and 70% complete with respect to labor. The production department incurred direct materials cost of $255,300 and its beginning inventory included materials cost of $94,200. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.
Answer:
cost per equivalent unit for direct materials is $1.39.
Explanation:
First, calculation of equivalent units of production with respect to Direct materials
Closing Work In Process (27,000 × 100%) = 27,000
Completed and Transferred (225,000 × 100%) = 225,000
Equivalent units of Production with respect to Direct materials = 252,000
Then calculate the cost per equivalent unit for direct materials as follows :
Cost per equivalent unit = Total Costs ÷ Total Equivalent units
= ($255,300 + $94,200) ÷ 252,000
= $1.39
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
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:
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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.
The following are monthly actual and forecast demand levels for May through December for units of a product manufactured by the D. Bishop Company in Des Moines:_______.
Month Actual Demand Forecast Demand
May 108 100
June 80 104
July 108 101
August 118 104
September 105 104
October 114 104
November 130 105
December 120 107
For the given forecast, the tracking signal = _______ MADs (round your response to two decimal places).
Answer:
4.24
Explanation:
The computation of tracking signal is shown below:-
Month Actual Demand(dt) Forecast Demand (ft) error (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs = 102 ÷ 8
= 12.75
Tracking signal = 54 ÷ 12.75
= 4.24
The tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
What is a tracking signal?A tracking signal is the ratio of the cumulative sum of the deviations between the estimated forecasts and the actual values of demand to the mean absolute deviations (MADs).
The tracking signal determines the larger deviation (in both plus and minus) of Error in Forecast.
The tracking signal can be calculated with this formula:
Tracking Signal = Accumulated Forecast Errors/Mean Absolute Deviation.
What is Mean Absolute Deviation?The mean absolute deviation is the average of values or more specifically, the difference between the actual values and their average value. The mean absolute deviation (MAD) is used for calculating demand variability.
Data and Calculations:Month Actual Forecast Error Difference
Demand(dt) Demand (ft) (dt - ft)
May 108 100 8 8
June 80 104 -24 24
July 108 101 7 7
August 118 104 14 14
September 105 104 1 1
October 114 104 10 10
November 130 105 25 25
December 120 107 13 13
Total 54 102
MADs (Mean Absolute Deviations) = 12.75 (102 ÷ 8)
Tracking signal = 4.24 (54 ÷ 12.75)
Thus, the tracking signal for the actual and forecast demand levels for May through December for D. Bishop Company is 4.24.
Learn more about the tracking signal at https://brainly.com/question/24099922
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
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.
Sheridan Co. wishes to enter receipts and payments in such a manner that adjustments at the end of the period will not require reversing entries at the beginning of the next period. Record the following transactions in the indicated manner and give the adjusting entry on December 31, 2020. (Two entries for each part.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
1. An insurance policy for two years was acquired on April 1, 2020 for $23,000.
2. Rent of $16,800 for six months for a portion of the building was received on November 1, 2020
Answer:
April, 1
DR Prepaid Insurance .............................................................$23,000
CR Cash ........................................................................................................$23,000
Dec, 31
DR Insurance Expense.............................................................$8,625
CR Prepaid Insurance................................................................................$8,625
Working
Insurance expense;
April to December = 9 months
= 23,000 * 9/24 months
= $8,625
Nov, 1
DR Cash ......................................................................................$16,800
CR Deferred rent revenue .....................................................................$16,800
Dec, 31
DR Deferred rent revenue ...................................................$5,600
CR Rent Revenue......................................................................................$5,600
Working
= 16,800 * 2/6 months
= $5,600
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
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.
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
