Answer:
mobile commerce is the answer
The correct option is D. PyPal is an example of mobile commerce.
A mobile eCommerce platform offers specific mobile features including loyalty cards, money transfers, deliveries, and banking in addition to mobile ticketing and coupons.
Why do we need mobile commerce?A customer can obtain a wide range of things delivered to their door by using M-commerce. They even receive several offers and discounts. Additionally, a variety of payment options like UPI, debit and credit cards, and cash on delivery make it simpler and more practical for users.
A safe and secure way to send and receive money online is through the use of PyPal. You can use PyPal to make online purchases from participating stores when you link your bank account, credit card, or debit card to your PyPal account.
Thus, D is the right answer. Mobile commerce is exemplified by PyPal.
Learn more about Mobile commerce here:
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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.
During the year, Belyk Paving Co. had sales of $2,560,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,364,000, $685,000, and $477,000, respectively. In addition, the company had an interest expense of $302,000 and a tax rate of 24 percent. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.)
a. What is the company's net income? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b. What is its operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
a. Net income
b. Operating cash
Answer:
Net income -$268,000
Operating Cash Flow $511,000
Explanation:
A. Calculation for the Net income
INCOME STATEMENT
Sales $2,560,000
Cost of goods sold $1,364,000
Other expenses $685,000
Depreciation $477,000
EBIT $34,000
Interest $302,000
Taxable income -$ 268,000
($34,000-$302,000)
Taxes (24%) 0
Net income -$268,000
CALCULATION FOR EBIT
Sales $2,560,000
LESS:Cost of goods sold ($1,364,000)
Other expenses ($685,000)
Depreciation ($477,000)
EBIT $34,000
Based on the information given we were told that we should ignore any tax loss which was why Taxes (24%) was $0
The taxes are zero since we are ignoring any carryback or carryforward provisions.
Therefore NET INCOME is -$268,000
B. Calculation for operating cash flow
Using this formula
Operating Cash Flow = EBIT + Depreciation - Taxes
Let plug in the formula
Operating Cash Flow= $34,000 + $477,000 - 0
Operating Cash Flow = $511,000
Therefore Operating Cash Flow is $511,000
At December 31, 2019, Sheffield Corporation had the following stock outstanding.
10% cumulative preferred stock, $100 par, 109,304 shares $10,930,400
Common stock, $5 par, 4,070,540 shares 20,352,700
During 2020, Sheffield did not issue any additional common stock. The following also occurred during 2020.
Income from continuing operations before taxes $23,082,300
Discontinued operations (loss before taxes) $3,316,900
Preferred dividends declared $1,093,040
Common dividends declared $2,221,700
Effective tax rate 35 %
Compute earnings per share data as it should appear in the 2020 income statement of Sheffield Corporation. (Round answers to 2 decimal places, e.g. 1.48.)
Answer:
Explanation:
The FIFO method provides a major advantage over the weighted-average method in that: A. the calculation of equivalent units is less complex under the FIFO method. B. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. C. the FIFO method separates the work done during the current period to provide measurements of work done during the current period. D. the FIFO method considers units in the work done in the ending work-in-process inventories. E. the FIFO method more correctly computes the equivalent units of direct materials when they are added at the beginning of the production process.
Answer:
C. the FIFO method separates the work done during the current period to provide measurements of work done during the current period.
Explanation:
When you are calculating production costs and equivalent units, FIFO method only focuses on the goods produced during the accounting period and basically doesn't consider previous costs associated to beginning inventory. On the other hand, the weighted average method includes both current costs and costs associated to beginning WIP.
Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 16,500 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $24,600. A total of 50,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.30 for materials and $3.00 for conversion costs. The total cost of the units completed and transferred out of the department was:
Answer:
Total cost of units transferred out =$215,000
Explanation:
The total cost of units transferred out would be determined as follows
Value of units transferred out =
Material cost of units transferred out + Labor cost of units transferred out
Cost for each element= cost per equivalent unit× no of equivalent units
Note that using the weighted average method, the number of equivalent unit for material and labour is taken to be 100% for the unit transferred out.
Material cost = $1.30 × 50,000 = 65,000
Labour cost = $3.00× 50,000 = 150,000
Total cost of units transferred out =65,000 + 150,000 = $215,000
Match the association type with the person that best fits the description: personal association a. your parents b. the president of your gardening club c. the man you met while walking your dog d. your doctor
Answer:
A
Explanation:
edge 2021
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.
BP had a group-wide corporate system to evaluate risk, introduced by Hayward. Why did this not predict the Deepwater Horizon Disaster?
Answer: High Complexity of the Drilling operation
Explanation:
The Deepwater Horizon disaster was the largest oil spillage in the history of maritime oil disasters and happened in April 2010 in the Gulf of Mexico on a BP oil project.
Normally, Oil Companies have plans that are meant to evaluate the risk of such events such that they can be avoided and indeed BP did have one which was introduced by its CEO Tony Hayward but this failed to predict the Deep Water Horizon for the simple reason that the project was too complex for it.
With so many things involved in the project, the system was not adequately prepared to handle the risk of failure from such complex structures such as the Deepwater Horizon rig which meant that BP were simply not prepared for the spill when it happened and this led to allegations that BP was not a safety-conscious company.
The corporate system that was used to evaluate risk at BP was not able to predict the Deepwater Horizon disaster for the primary reason that the system was rendered useless in the face of high degree of complexity that BP’s oil drilling operations in Gulf of Mexico faced. Due to the high degree of risk all the participating parties lost hold of sight over the risk analysis process that was put in place by the company.
The complexity of the system led to the undermining and failure of the corporate system to evaluate risk. BP tried to shift the weight of the blame to Transocean Company, but in fact it was BP itself that failed to foresee this event.
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
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
2018 2017 Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,125 Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,750 $2,125 Income Statements: 2018 2017 Sales $2,000 $1,500 Operating costs excluding depreciation 1,250 1,000 EBITDA $750 $500 Depreciation and amortization 100 75 EBIT $650 $425 Interest 62 45 EBT $588 $380 Taxes (40%) 235 152 Net income $353 $228 Dividends paid $53 $48 Addition to retained earnings $300 $180 Shares outstanding 150 150 Price $ 20.83 $ 18.33 WACC 12.00 % Using the financial statements above, what is Rosnan's 2018 market value added (MVA)
Answer:
The market value of an equity is $1,199.50
Explanation:
The computation of the market value added is shown below:
Market value added is
= (Price of share × Number of common shares) - (Book value of an equity)
= ($20.83 × 150) - ($1,225 + $700)
= $3,124.50 - $1,925
= $1,199.50
Hence, the market value of an equity is $1,199.50
We simply applied the above formula
Activity Cost Pools (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $ 336,600 Batch setup (setups) $ 382,260 Order size (direct labor-hours) $ 274,500 Expected Activity Activity Cost Pools Product X Product Y Total Machine related 5,600 7,600 13,200 Batch setup 11,200 2,600 13,800 Order size 4,600 7,600 12,200 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$545,700
Explanation:
The computation of the total amount of overhead cost allocated for product X is shown below:
Machine related [$336,600 × 5,600 ÷ 13,200] $142,800
batch setups [$336,600 × 11,200 ÷ 13,200] $285,600
Order Size [$336,600 × 4,600 ÷ 13,200] $117,300
Total amount of overhead cost allocated $545,700
In spring of this year, Parmac Engineering Company signed a $480 million contract with the city of Parkersburg, to construct a new city hall. Parmac expects to construct the building within two years and incur expenses of $360 million. The city of Parkersburg paid $120 million when the contract was signed, $240 million within the next six months, and the final $120 million exactly one year from the signing of the contract. Parmac incurred $144 million in costs during the year and the rest in the following year to complete the contract on time. Using the cost-to-cost method how much revenue should Parmac recognize in the current year
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
Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $200,000 investment. Andrea’s marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, she is eligible to claim the deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation. a. How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation? (Round intermediate calculations and your final answers to the nearest whole dollar.)
Answer: The answer is given below
Explanation:
After-tax return is the percentage on an investment's return after tax expense has been deducted from the return that is earned.
The following can be derived from the information given in the question:
• SHO is a LLC
Gross return = 200,000 X 11%
= 200,000 × 0.11
= 22,000
Marginal tax at 35% = 22,000 X 35%
= 22000 × 0.35
= 7,700
Return before dividend tax:
= 22000 - 7700
= 14,300
Self employment tax at 2.9%:
= 14,300 X 2.9%
= 14300 × 0.029
= 414.7
Medicare tax at 0.9%
= 14,300 X 0.9%
= 128.7
Cash return after tax:
= 14300 - 414.7 - 128.7
= $13756.6
• SHO is a C corporation:
Gross return = 200,000 X 11%
= 200,000 × 0.11
= 22,000
Marginal tax at 35% = 22,000 X 35%
= 22,000 × 0.35
= 7,700
Return before dividend tax:
= Gross return - Marginal tax
= 22000 - 7700
= 14300
Dividend tax = 14,300 X 15%
= 14,300 × 0.15
= 2,145
Cash Return after tax:
= 14300 - 2145
= $12,155
BD Corporation has purchased new computers to modernize the office. The increased efficiency from the computers will lead to increases in productivity from the office staff. Estimates of the additional revenue from the productivity are $75,000 per year (end of year) for the next five years when the computers will need to be replaced. The new computers will cost $300,000. You will have to borrow from your local bank at a rate of 8% APR. Should you go ahead with the new computers
Answer:
BD Corporation should not purchase the new computers
Explanation:
initial outlay year 0 = -$300,000
increased productivity per year = $75,000 for years 1-5
discount rate = 8%
NPV = -$300,000 + $75,000/1.08 + $75,000/1.08² + $75,000/1.08³ + $75,000/1.08⁴ + $75,000/1.08⁵ = -$300,000 + $69,444.44 + $64,300.41 + $59,537.42 + $55,127.24 + $51,043.74 = -$300,000 + 299,453.25 = -$546.75
since NPV is negative, then the project should be rejected
we can also use an annuity factor to determine the present value of this annuity, PV = $75,000 x 3.9927 = $299,452.50
NPV = -$300,000 + $299,452.50 = -$547.50
The following are various management assertions related to sales and account receivable. Required: i) For each assertion, indicate whether it is an assertion about classes of transactions and events or an assertion about account balances. ii) Indicate the name of the assertion made by management. MANAGEMENT ASSERTION CATEGORY OF MANAGEMENT ASSERTION NAME OF ASSERTION a. Recorded accounts receivable exist. b. Disclosures related to sales are relevant and understandable. c. Recorded sales transactions have occurred. d. There are no liens or other restrictions on accounts receivable. e. All sales transactions have been recorded. f. Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described. g. Sales transactions have been recorded in the proper period. Cut off h. Accounts receivable are recorded at the correct amounts. i. Sales transactions have been recorded in the appropriate accounts. j. All required disclosures about accounts receivables have been made. k. All accounts receivable have been recorded. l. Disclosures related to receivables are at the correct amounts. m. Sales transactions have been recorded at the correct amounts.
Answer:
The following are the solution to this question:
Explanation:
1) In the assertion groups or the title of the claim taken by the organization for each assertion
a. Sales and accounts receivable divulgations relate to the company.
Category of assertion: Introduction and publishing
List of the statement: Occurrence
b. There's been registered sales transactions.
Name of Assertion Class: Transactions and Events
Name of the statement: Occurrence
c. No accounts receivable bonds or other limitations exist.
Class assertion: the value of accounts s
Name of claim: rights and duties
d. All payments were registered.
Assertion class: Payment class and events
Title of the statement: Occurrence
e. Throughout the financial statements, accounts receivable are listed accordingly or specifically defined with relation to trade as well as other claims.
Activism class: submission and divulgation
Name of claim: plans for the future
f. Throughout the correct time, sales transactions are reported.
Assertion Class: Transactions and Occurrences
Name of the claim: Cutoff
g. The receivable accounts were reported throughout the right number.
Class assertion: Balances of account
Name of the statement: evaluation
h. In corresponding accounts, cash sales were registered.
Class of assertion: transaction and events
Name of claim: category.
i. All required sales and accounts receivable disclosures are made.
Class of assertion: presentation and exposing the name of claim name: completeness.
j. Both receivable records were registered.
Class assertion: Balance of account
Name of the statement: Life.
k. Assertions relating to damages shall be in the correct amounts.
Class of assertion: presentation and exposing
Name of claim: Precision.
l. Exchanges in the right amounts were registered.
Class of assertion: activity and occurrences
Name of claim: Accuracy
2) Differences between the leadership assertions groups
Presidency of transaction classes or events:
This would be to claim that its transfers were accurately recorded and during the proper fiscal quarter in terms of income and incident.
Checking account management assertions:
It is because the accounting report of any payments has also been properly accurately reported without any error and during the correct fiscal quarter.
Presentation and time in question management assertions:
Its point would be that the information contained in the financial statements is contained or disclosed appropriately.
You are asked to investigate how to determine which marketing techniques will be effective for selling a new product. You must write a report about your findings. Once you have analyzed the problem and purpose of the report, you begin to anticipate the audience of your report. You consider the average educational level and prior subject knowledge of your readers. What does the educational level and prior subject knowledge of your audience help you determine
Explanation:
To determine the most effective marketing techniques for selling a new product, it is necessary to develop a marketing plan, which is a strategic tool to identify and structure which marketing actions will lead an organization to achieve its goals.
So as stated in the question above, when writing a report on your findings to sell a new product, after analyzing the problem and the purpose of the report, by anticipating the potential audience and finding out the educational level and prior knowledge of the subject of your audience , it is possible to determine how the company will segment the market, that is, develop marketing campaigns and personalized strategies and aligned with the characteristics and preferences of its potential audience to achieve the central objective, which is to sell the product and achieve profitability and competitiveness in the market .
The Saunders Investment Bank has the following financing outstanding. Debt: 50,000 bonds with a coupon rate of 7 percent and a current price quote of 110; the bonds have 20 years to maturity. 220,000 zero coupon bonds with a price quote of 18 and 30 years until maturity. Assume semiannual compounding. Preferred stock: 140,000 shares of 5 percent preferred stock with a current price of $80, and a par value of $100. Common stock: 2,500,000 shares of common stock; the current price is $66, and the beta of the stock is 1.2. Market: The corporate tax rate is 35 percent, the market risk premium is 6 percent, and the risk-free rate is 3 percent. What is the WACC for the company
Answer:
the company's WACC = 7.85%
Explanation:
we must first determine the market value of debt, preferred stocks and common stocks:
debt 1 = 50,000 x $1,000 x 1.1 = $55,000,000, weight 20.31%
debt 2 = 220,000 x $1,000 x 0.18 = $39,600,000, weight 14.62%
preferred stock = 140,000 x $80 = $11,200,000. weight 4.14%
common stock = 2,500,000 x $66 = $165,000,000, weight 60.93%
total market value = $270,800,000
cost of debt 1:
YTM = {35 + [(1,000 - 1,100)/40]} / [(1,000 + 1,100)/2] = 32.5/1,050 = 3.095 x 2 = 6.19%
after tax cost = 6.19% x 0.65 = 4.02%
cost of debt 2:
price = face value / (1 + i)ⁿ
180 = 1,000 / (1 + i)³⁰
(1 + i)³⁰ = 1,000 / 180 = 5.55555
³⁰√(1 + i)³⁰ = ³⁰√5.55555
1 + i = 1.058825
i = 0.058825 = 5.8825%
after tax cost = 5.8825% x 0.65 = 3.82%
cost of preferred stocks = 5 / 80 = 6.25%
cost of equity:
Re = Rf + (B x MP) = 3% + (1.2 x 6%) = 10.2%
the company's WACC = (60.93% x 0.102) + (4.14% x 0.0625) + (20.31% x 0.0402) + (14.62% x 0.0382) = 6.21% + 0.26% + 0.82% + 0.56% = 7.85%
Ricardo Construction began operations on December 1. In setting up its accounting procedures company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts. Prepare journal entries for items a through d and the ad when customers pay for services in advance just and ng entries as of its December 31 period-end for items e through g. (Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Interest Receivable; Supplies; Prepaid Engpeme in erred Bp nKemodeling Fees: Remodeling Fees Earned Supplies Expense Expense; Interest Expense.)a. Supplies are purchased on December 1 for $2,000 cash.b. The company prepaid its insurance premiums for $1,540 cash on December 2c. On December 15, the company receives an advance payment of $13,000 cash from a customer for remodeling work.d. On December 28, the company receives $3,700 cash from another customer for remodeling work to be performed in Januarye. A physical count on December 31 indicates that the company has $1,840 of supplies available.f. An analysis of the insurance policies in effect on December 31 shows that $340 of insurance had expired.g. As of December 31, only one remodeling project has been worked on and completed. The s5,570 fee for this project had been received in advance and recorded as remodeling fees earned
Answer:
Date Account title and Explanation Debit Credit
Dec 01 Supplies expenses $2,000
Cash $2,000
(To record Supplies inventory purchases)
Dec 02 Insurance Expenses $1,540
Cash $1,540
(To record prepaid insurance premiums)
Dec 15 Cash $13,000
Remodeling fees earned $13,000
(To record upfront remodeling fees)
Dec 28 Cash $3,700
Remodeling fees earned $3,700
(To record upfront remodeling fee)
Dec 31 Supplies $1,840
Supplies expenses $1,840
(To adjust supplies purchase asset to expense)
Dec 31 Prepaid Insurance $1,200
Insurance Expenses $1,200
($1,540 - $340)
(To adjust prepayment from asset to expense)
Dec 31 Remodeling fees earned $11,130
Unearned remodeling fees $11,130
($13,000 + $3,700 - $5,570)
(To adjust Unearned Remodeling Fees to
Remodeling Fees earned)
A company's 2019 financial records included the following: Jan. 1, 2019 Dec. 31, 2019 Accounts Receivable $100,000 $80,000 Inventory $50,000 $70,000 Prepaid Expenses $100,000 $75,000 Accounts Payable $100,000 $110,000 Deferred Revenue $85,000 $70,000 The company's net income on its 2019 income statement is $155,000. Depreciation expense for 2019 is $25,000. What amount would the company report as net cash from operating activities for 2019
Answer:
The amount of net cash from operating activities for 2019 is $210,000.
Explanation:
Cash flows from operating activities refers to the section of the statement of cash flow that reveal the sources and utilization of cash got from ongoing normal business activities of a company in particular period.
Items that usually found under cash flows from operating activities are net income from the income statement, adjustments to reconcile net income, and changes in working capital.
The amount of net cash from operating activities for 2019 can be determined by preparing a statement of cash flow for operating activities only as follows:
Statement of cash flows
(Operating activities section only)
For the year ended 2019
Details Amount ($)
Net income 155,000
Adjustment to reconcile net income:
Depreciation expense 25,000
Changes in working capital:
(Increase) decrease in current assets
Accounts Receivable ($80,000 - $100,000) 20,000
Inventory ($70,000 - $50,000) (20,000)
Prepaid Expenses ($75,000 - $100,000) 25,000
Increase (decrease) in current liabilities
Accounts Payable ($110,000 - $100,000) 10,000
Deferred Revenue ($70,000 - $85,000) (15,000)
Net cash from operating activities 210,000
Answer:
Boxed like a fish
Explanation:
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $6,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $200 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $450. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $11,700 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $11,700 owed on the April 18 purchase. 28 Sent check to Frist paying f
Answer:
April 2
Merchandise $6,200 (debit)
Accounts Payable : Lyon Company $6,200 (credit)
Purchase of Merchandise on credit from Lyon Company (FOB)
April 3
Accounts Payable : Lyon Company $200 (debit)
Cash $200 (credit)
Payment of Shipping Costs included in the Invoice
April 4
Accounts Payable : Lyon Company $450 (debit)
Merchandise $450 (credit)
Return of unacceptable merchandise to Lyon Company
April 17
Accounts Payable : Lyon Company $5,550 (debit)
Discount Received $111 (credit)
Cash $5,439 (credit)
Settlement of Account with supplier and recognition of discount received
April 18
Merchandise $11,700 (debit)
Accounts Payable : Frist Corp $11,700 (credit)
Purchase of Merchandise on credit from Frist Corp (FOB)
April 21
Accounts Payable : Frist Corp $500 (debit)
Merchandise $500 (credit)
Allowance received from supplier (Frist Corp)
Explanation:
There is some missing transactions for the dates closer to end of April.
However the rest of the journals and their narrations have been prepared. This will help with completing the rest of the transactions.
See journals above.
Trailers R Us Company, which uses an activitybased costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data: Travel trailers Boat trailers Budgeted units to be produced 2,050 3,200 Budgeted number of setups 320 520 Budgeted number of direct labor hours per unit 40 80 Total budgeted setup costs for the year are $155,400. If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?
Answer:
Boat trailers= $96,200
Explanation:
Giving the following information:
Travel trailers Boat trailers:
Budgeted units to be produced 2,050 3,200
Budgeted number of setups 320 520 = 840
Total budgeted setup costs for the year are $155,400.
First, we need to calculate the predetermined activity rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Setup= 155,400/840= $185 per setup
Now, we can allocate costs to boat trailers:
Boat trailers= 185*520= $96,200
The following T-account is a summary of the Cash account of Skysong, Inc.. Cash (Summary Form) Balance, Jan. 1 8,100 Receipts from customers 362,500 Payments for goods 297,400 Dividends on stock investments 5,500 Payments for operating expenses 139,600 Proceeds from sale of equipment 35,600 Interest paid 12,000 Proceeds from issuance of Taxes paid 7,200 bonds payable 499,900 Dividends paid 60,100 Balance, Dec. 31 395,300 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows
Answer: $439,800
Explanation:
The financing activities of a firm are those that relate to the provision of capital to the business. This will therefore include long term liabilities and Equity transactions including Dividend payments.
The net cash provided (used) by financing activities = Proceeds from issuance of bonds payable (Inflow) - Dividends paid (Outflow)
= 499,900 - 60,100
= $439,800
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
The adjusted trial balance for PI Detectives reported the following account balances: Accounts Receivable $500; Supplies $9,000; Prepaid Insurance $7,200; Equipment $28,000; Accumulated Depreciation $4,000; Accounts Payable $200; Deferred Revenue $5,000; Notes Payable $3,000; Common Stock $22,000; Retained Earnings $5,700; Dividends $3,000; Service Revenue $33,800; Salaries and Wages Expense $20,000; and Depreciation Expense $1,000. Prepare an adjusted trial balance as of December 31, and solve for its missing Cash balance.
Answer:Cash balance = $5,000
Explanation:
Account Titles Debit Credit
Accounts Receivable $ 500
Supplies $9,000
Prepaid Insurance $7,200
Equipment $ 28,000
Accumulated Depreciation—Equipment $4,000
Accounts Payable $200
Unearned Revenue $5,000
Notes Payable $3,000
Common Stock $ 22,000
Retained Earnings $ 5,700
Dividends $3,000
Service Revenue $ 33,800
Salaries and Wages Expense $20,000
Depreciation Expense $1,000
TOTALS $68,700 $ 73,700
Cash Balance
($73,700 -68,700) $5,000
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
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
Management of Solman Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was $20,000. During the month, the company made raw materials purchases amounting to $69,000. At the end of the month, the balance in the raw materials inventory account was $32,000. Direct labor cost was $24,000 and manufacturing overhead was $71,000. The beginning balance in the work in process account was $24,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $53,000 and the ending balance was $58,000. Selling expense was $20,000 and administrative expense was $35,000. The conversion cost for June was:
Answer:
The conversion cost is $95,000
Explanation:
The computation of the conversion cost is shown below:
As we know that
Conversion cost
= Direct Labour + Overheads
where,
Direct labor is $24,000
And, the overhead is $71,000
Now placing these valeus to the above formula
So, the conversion cost is
= $24,000 + $71,000
= $95,000
Hence, the conversion cost is $95,000
HELP PLEASE NOW!!!!!List the four stages of ability development. Provide an example of a person developing a specific ability. What would each stage look like?
Answer:
Sensorimotor Stage (0 - 2 years)
Preoperational Stage (2 - 7 years)
Concrete Operational Stage (7 - 11 years)
Formal Operational Stage (11 - 15 years)
Explanation:
The Anderson Company has equal amounts of low-risk, average-risk, and high-risk projects. The firm's overall WACC is 12%. The CFO believes that this is the correct WACC for the company's average-risk projects, but that a lower rate should be used for lower-risk projects and a higher rate for higher-risk projects. The CEO disagrees, on the grounds that even though projects have different risks, the WACC used to evaluate each project should be the same because the company obtains capital for all projects from the same sources. If the CEO's position is accepted, what is likely to happen over time
Answer:
e. The company will take on too many high-risk projects and reject too many low-risk projects.
Explanation:
By using the WACC for discounting purposes in case of the higher risk projects the net present value would be greater in such cases and also the high discount rate is applied. It is easily accepted but at the same time it also rise the organization risk
Therefore in the given case, the option e is correct and the same is to be considered
