Answer:
a. Ending inventory - UNDERSTATED by $2,200
The goods were shipped FOB shipping point which means that they should be included as inventory as soon as they are shipped by the supplier. As they were not, Inventory was understated by $2,200.
b. Total assets - UNDERSTATED by $2,200
Inventory is part of Assets so if Inventory is understated by $2,200 then so are Total Assets.
c. Net income - UNDERSTATED by $2,200
Ending Inventory is subtracted from Cost of Goods sold which is then subtracted from Revenue. As ending inventory was understated, that means Cost of Goods sold was Overstated and therefore had the effect of understating Revenue and by extension, Net Income.
d. Total equity - UNDERSTATED by $2,200
Net Income goes to Total equity as Retained earnings so if Net income is understated so also is Total equity.
The amount of understatement for ending inventory, total assets, net income, and total equity is $2200.
From the information given, the amount of overstatement or understatement for each amount for this period will be:
Ending inventory = $2200 = Understated Total assets = $2200 = Understated Net income = $2200 = Understated Total equity = $2200 = UnderstatedWhen inventory is understated, the assets will be understated too. Also, when net income is understated, total equity is understated too.
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The following transactions apply to Jova Company for Year 1, the first year of operation:
a. Issued $17,000 of common stock for cash.
b. Recognized $63,000 of service revenue earned on account.
c. Collected $56,400 from accounts receivable.
d. Paid operating expenses of $36,600.
e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account.
The following transactions apply to Jova for Year 2:
a. Recognized $70,500 of service revenue on account.
b. Collected $64,400 from accounts receivable.
c. Determined that $860 of the accounts receivable were uncollectible and wrote them off.
d. Collected $300 of an account that had previously been written off.
e. Paid $48,100 cash for operating expenses.
f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.
Required:
a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange).
b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows.
c. Prepare closing entries and post these closing entries to the T-accounts. Prepare the postclosing trial balance.
Answer:
Year 1:
a. Issued $17,000 of common stock for cash. ⇒ ASSET SOURCE
Dr Cash 17,000
Cr Common stock 17,000
b. Recognized $63,000 of service revenue earned on account. ⇒ ASSET SOURCE
Dr Accounts receivable 63,000
Cr Service revenue 63,000
c. Collected $56,400 from accounts receivable. ⇒ ASSET EXCHANGE
Dr Cash 56,400
Cr Accounts receivable 56,400
d. Paid operating expenses of $36,600. ⇒ ASSET USE
Dr Operating expense 36,600
Cr Cash 36,600
e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. ⇒ ASSET USE
Dr Bad debt expense 132
Cr Allowance for doubtful accounts 132
Year 2:
a. Recognized $70,500 of service revenue on account. ⇒ ASSET SOURCE
Dr Accounts receivable 70,500
Cr Service revenue 70,500
b. Collected $64,400 from accounts receivable. ⇒ ASSET EXCHANGE
Dr Cash 64,400
Cr Accounts receivable 64,400
c. Determined that $860 of the accounts receivable were uncollectible and wrote them off. ⇒ ASSET EXCHANGE
Dr Bad debt expense 860
Cr Accounts receivable 860
d. Collected $300 of an account that had previously been written off. ⇒ ASSET EXCHANGE
Dr Accounts receivable 300
Cr Bad debt expense 300
Dr Cash 300
Cr Accounts receivable 300
e. Paid $48,100 cash for operating expenses. ⇒ ASSET USE
Dr Operating expense 48,100
Cr Cash 48,100
f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account. ⇒ ASSET USE
Dr Bad debt expense 117
Cr Allowance for doubtful accounts 117
trial balance year 1
Dr Cash 36,800
Dr Accounts receivable 6,468
Cr Common stock 17,000
Cr Service revenue 63,000
Dr Operating expense 36,600
Dr Bad debt expense 132
Income Statement
Year 1
Service revenue $63,000
Expenses:
Operating expense $36,600Bad debt expense $132 ($36,732)Net income $26,268
Balance Sheet
Year 1
Assets:
Cash $36,800
Accounts receivable $6,468
Total Assets $43,268
Equity:
Cr Common stock 17,000
Retained earnings $26,268
Total equity $43,268
Statement of changes in stockholders' equity
Year 1
Beginning balance $0
Common stock issued $17,000
Net income $26,268
Ending balance $43,268
trial balance year 2
Dr Cash 16,600
Dr Accounts receivable 5,123
Cr Service revenue 70,500
Dr Operating expense 48,100
Dr Bad debt expense 677
Income Statement
Year 2
Service revenue $70,500
Expenses:
Operating expense $48,100Bad debt expense $677 ($48,777)Net income $21,723
Statement of changes in stockholders' equity
Beginning balance:
Common stock issued $17,000
Retained earnings $26,268
Net income $21,723
Ending balance $64,991
Balance Sheet
Year 2
Assets:
Cash $53,400
Accounts receivable $11,591
Total Assets $64,991
Equity:
Cr Common stock 17,000
Retained earnings $47,991
Total equity $64,991
Statement of cash flows
Year 2
Net income $21,723
Adjustments to net income:
Increase in accounts receivable ($5,123)
Net cash from operating activities $16,600
Net cash increase $16,600
Beginning cash balance $36,800
Ending cash balance $53,400
Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to be $930,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $52,000 for Job 301, $77,000 for Job 302, and $110,000 for Job 303. For the year, actual manufacturing overhead was $464,000 and total direct labor cost was $847,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using pre-determined rates.
Required:
A. How much overhead was assigned to each of the three jobs, 301, 302, and 303?
B. What was the over- or underapplied manufacturing overhead for year 1?
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 418,500/930,000
Predetermined manufacturing overhead rate= $0.45 per direct labor dollar
Now, we can allocate overhead yo Job 301, 302, 303:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Job 301= 0.45*52,000= $23,400
Job 302= 0.45*77,000= $34,650
Job 303= 0.45*110,00= $49,500
Finally, we allocate overhead for the whole company and calculate the under/over allocation:
Allocated MOH= 0.45*847,000= $381,150
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 464,000 - 381,150
Under/over applied overhead= $82,850 underallocated
Verne Cova Company has the following balances in selected accounts on December 31, 2014.
Accounts Receivable $ -0-
Accumulated Depreciation—Equipment -0-
Equipment 7,000
Interest Payable -0-
Notes Payable 10,000
Prepaid Insurance 2,100
Salaries and Wages Payable -0-
Supplies 2,450
Unearned Service Revenue 30,000
All the accounts have normal balances. The information below has been gathered at December 31, 2014.
1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2014.
2. A count of supplies on December 31, 2014, indicates that supplies of $900 are on hand.
3. Depreciation on the equipment for 2014 is $1,000.
4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2014.
5. On December 1, 2014, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2014, through March 31, 2015.
6. Verne Cova performed consulting services for a client in December 2014. The client will be billed $4,200.
7. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2014.
Instructions:
Prepare adjusting entries for the seven items described above.
Answer and Explanation:
The adjusting journal entries are shown below:
1) Interest Expense $400 ($10,000 × 12% × 3 months ÷ 12 months)
Interest Payable $400
(Being interest expense is recorded)
2) Supplies expense $1,500 ($2,450 - $900)
To Supplies $1,550
(being supplies expense is recorded)
3) Depriciation expense $1,000
Accumulated depriciation - equipment $1,000
(being depreciation expense is recorded)
4) Insurance expense $1,225 ($2,100 × 7 months ÷ 12 months)
To Prepaid insurance $1,225
(Being insurance expense is recorded)
5) Unearned service revenue $7,500 ($30,000 ÷ 4)
Service revenue $7,500
(being service revenue is recorded)
6) Account receivable $4,200
To Service revenue $4,200
(being account receivable is recorded)
7) Salaries and wages expense $5,400 ($9,000 ÷ 5 days × 3 days)
To Salaries and wages payable $5,400
(being salaries & wages expense is recorded)
1. All receivables that are expected to be realized in cash within a year are reported in the __________ section of the balance sheet. current assets investments noncurrent assets current liabilities
Answer:
A. current assets
Explanation:
In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, receivables are current assets on the balance sheet, which are listed in order of liquidity.
All receivables that are expected to be realized in cash within a year are reported in the current assets section of the balance sheet.
A project manager is faced with the following activities and times associated with a building construction for a cancer research facility. Each activity can be crashed at most by 2 weeks. The cost associated with each week time reduction is given below. (note: The 1st crash and 2nd crash costs are associated with the first and second time that a specific activity is crashed. So, if you crash Activity A once, the cost is $9,000, if you have to crash Activity A a second time, the cost is $9,500)
Crash Costs
Activity Immediate Predecessor Normal Time (weeks) 1st crash 2nd crash
A 3 $9,000 $9,500
B A 6 $3,500 $6,000
C А 7 $4,000 $5,000
D B 7 $4,500 $6,000
E C 5 $7,000 $7,500
F D,E 8 $10,000 $12,000
G F 2 $14,000 $16,000
What is the minimum cost to crash this project by 2 weeks?
a. $12,000
b. $9,000
c. $16,000
d. $3,500
Answer:
$12000 ( A )
Explanation:
Calculate The minimum cost to crash this project by 2 weeks
To get the minimum cost to crash this project in 2 weeks we have to first look to crash the activity on the critical path that has the lowest cost of crashing from the first week
critical path: A-B-D-F-G = 25 weeks
After crashing Activity B by 1 week both paths become critical paths hence we need to crash activity C and D by 1 week each so that the paths can crash simultaneously within 2 weeks
therefore the overall crash cost for 2 weeks will be
crash costs of Activities : B + C + D ( 1st crashes)
= 3500 + 4000 + 4500
= $12000
Which has a negative impact on performance
Answer:
bad wi fi bad prefomancne
Explanation:
bad wi fi bad prefomancne
The readings suggest there are certain strategies for pricing new products, which is decidedly more difficult than adjusting prices to existing products. The new product pricing approaches are:
Skimming
Penetration
Everyday low prices
The pricing approaches discussed for existing products are:
Cost plus
Markup
Markdown
Odd-even pricing
Prestige pricing
Price lining
Demand backward pricing
Leader pricing
Sealed bid pricing
Going-rate pricing
Price bundling
Captive pricing
Product mix pricing
Two-part pricing
Promotional pricing
There is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes.
Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic.
Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. So promotional pricing is not "for sale" (pun intended). Pick one of the other approaches for this topic.
Answer:
Strategy - Prestige Pricing
Product - Female Bags
Explanation:
Another term for this is Premium Pricing or Image Pricing.
It's a pricing strategy where a product's price is set very high in order to create the impression that it is of very high quality. This strategy is mostly used if it is discovered that keeping the prices low will discourage sales or at best leave it dormant.
In order to use this strategy successfully, the manufacturers always take particular care to differentiate the product by including additional features to the product such as using high-quality materials.
The target market for this product is usually the influencers and love to show off. In order words, they are more particular about their image.
For this strategy to work, the manufacturer has to be consistent in the brand positioning and pay exceptional attention to fine details and finishing. It is also important to target consumers with high spending ability.
A real-world example of a business that uses this strategy is Nike.
Cheers
Cullumber Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable $ 0
Accumulated Depreciation—Equipment 0
Equipment 8,000
Interest Payable 0
Notes Payable 11,000
Prepaid Insurance 3,120
Salaries and Wages Payable 0
Supplies 2,200
Unearned Service Revenue 28,000
All the accounts have normal balances. The information below has been gathered at December 31, 2020.
1. Cullumber Company borrowed $9,400 by signing a 9%, one-year note on September 1, 2020.
2. A count of supplies on December 31, 2020, indicates that supplies of $970 are on hand.
3. Depreciation on the equipment for 2020 is $2,000.
4. Cullumber Company paid $3,120 for 12 months of insurance coverage on June 1, 2020.
5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200.
7. Cullumber Company pays its employees total salaries of $5,600 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.
Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
1. Cullumber Company borrowed $9,400 by signing a 9%, one-year note on September 1, 2020.
Dr Cash 9,400
Cr Notes payable 9,400
December 31, 2020, adjusting entry
Dr Interest expense 282
Cr Interest payable 282
2. A count of supplies on December 31, 2020, indicates that supplies of $970 are on hand.
December 31, 2020, adjusting entry
Dr Supplies expense 1,230
Cr Supplies 1,230
3. Depreciation on the equipment for 2020 is $2,000.
December 31, 2020, adjusting entry
Dr Depreciation expense 2,000
Cr Accumulated depreciation, equipment 2,000
4. Cullumber Company paid $3,120 for 12 months of insurance coverage on June 1, 2020.
December 31, 2020, adjusting entry
Dr Insurance expense 1,820
Cr Prepaid insurance 1,820
5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.
Dr Cash 28,000
Cr unearned revenue 28,000
December 31, 2020, adjusting entry
Dr Unearned revenue 7,000
Cr Service revenue 7,000
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200.
December 31, 2020, adjusting entry
Dr Accounts receivable 4,200
Cr Service revenue 4,200
7. Cullumber Company pays its employees total salaries of $5,600 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.
December 31, 2020, adjusting entry
Dr Wages expense 3,360
Cr Wages payable 3,360
York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
2015 $20,000
2016 28,000
2017 200,000
2018 350,000
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined.
par value dividend dividend number of preferred annual
per preffered rate per preffered preffered divedends preffered
share share shares dividend
total cash paid to paid to dividend in
dividend preferred common arrears at
paid year-end
2015 20000 20000
2016 28000 28000
2017 200000
2018 350000 30000 320000
totals 598000 78000 320000
Answer:
total non-cumulative preferred stock dividends per year = 80,000 x 7.5% x $5 = $30,000
since the bonds are non-cumulative, if the dividends are not paid during one year, they are basically lost since they will not be paid in the future.
year
2015: $20,000 distributed to preferred stockholders
$0.25 per preferred stock$0 to common stockholders2016: $28,000 distributed to preferred stockholders
$0.35 per preferred stock$0 to common stockholders2017: $30,000 distributed to preferred stockholders, $170,000 distributed to common stockholders
$0.375 per preferred stock$0.85 per common stock2018: $30,000 distributed to preferred stockholders, $320,000 distributed to common stockholders
$0.375 per preferred stock$1.60 per common stock
Dividends paid during the 4 year period:
Preferred stockholders received $108,000 in total
$1.35 per preferred stockCommon stockholders received $490,000 in total
$2.45 per common stockThe total dividend for the preferred stockholders is $108000 while the value for the common stock holders will be $490000.
The value of the dividends paid during the four year period for the preferred stockholders will be:
= $20000 + $28000 + $30000 + $30000
= $108000
The value of the dividends paid during the four year period for the common stockholders will be:
= $170000 + $320000
= $490000
The dividend per preferred stock will be:
= $0.25 + $0.35 + $0.375 + $0.375
= $1.35
The dividend per common stock will be:
= $0.85 + $1.60
= $2.45
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Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31.
Answer:
The question is incomplete, below is the completed question:
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows:
Oct. 1 Inventory 200 units at $30
7 Sale 160 units
15 Purchase 180 units at $33
24 Sale 150 units
Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24 b. Inventory on October 31
Answer:
a) cost of goods sold on October 24 = $4,830
b) Inventory on October 31 = 70 units
Explanation:
a) First-in-first-out (FIFO) inventory system is a type of inventory accounting system where the oldest inventory goods are recorded as sold first befor the newer ones.
on October 24, 150 units of goods were sold
Let us calculate the amount of inventory remaining from the old stock after the first sales:
On October 1, the inventory = 200 units at $30/unit
October 7: sales = 160 units
Units remaining = 200 - 160 = 40 units at $30/unit
on October 15, 180 units were purchased at $33
Now, the sales on October 24 = 150 units.
out of these 150 units, using FIFO, the old stock of 40 units at $30 (as calculated above) will be sold first, then the remaining 110 units will be sold from the October 15 purchases.
Therefore total cost of goods sold:
40units at $30 = 40 × 30 = $1200
110 units at $33 = 110 × 33 = $3630
Total cost of goods sold = 3630 + 1200 = $4,830
b) beginning inventory = 200 units
Sale in Oct. 7 = 160 units
After the sales on Oct. 7, the inventory = 200 - 160 = 40 units
A purchase of 180 units was made on Oct. 15. Therefore, total number of units available on Oct. 15 = 180 + 40 = 220 units
Finally, 150 units were sold on Oct. 24, Therefore the inventory on Oct. 31
= 220 - 150 = 70 units
During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $55,000. DZC returned $8,500 of this merchandise to the manufacturer for credit on its account. DZC then sold $43,000 of the remaining goods at a selling price of $69,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,300. These goods were in perfect condition, so they were put back into DZC’s inventory at their cost of $4,500. At year-end, DZC estimated $9,510 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,800 as its cost of this merchandise.
Required:
Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system.
Answer:
Explanation:
Journal Entries
Event Account Title and Explanation Debit Credit
1 Inventory (or merchandise) $ 55,000
Accounts Payable $ 55,000
To record the purchase on account
2 Accounts Payable $ 8,500
Inventory (or merchandise) $ 8,500
To record return the merchandise
3. Cash ( or Accounts receivable) $69,600
Sales Revenue $ 69,600
To record sales revenue
4. Cost of goods sold $43,000
Inventory (or merchandise inventory) $43,000
To record cost of goods sold
5. Sales return and allowances $7,300
Cash (or Accounts receivable) $7,300
To record the sales return
6. Inventory (or merchandise Inventory) $ 4,500
Cost of goods sold $4,500
To record the reversal of COGS (Cost of goods sold)
7. Sales return and allowances $ 9510
Allowances for sales return $9510
To record the allowances for the estimated return
8. Inventory - Estimated Return $5,800
Cost of goods $5,800
To record the allowances for the estimated -
return of the cost of goods sold
Lansbury Inc. had the following balance sheet at December 31, 2019.
LANSBURY INC. BALANCE SHEET DECEMBER 31, 2019
Cash $20,000 Accounts payable $30,000
Accounts receivable 21,200 Notes payable (long-term) 41,000
Investments 32,000 Common stock 100,000
Plant assets (net) 81,000 Retained earnings 23,200
Land 40,000 $194,200
$194,200
During 2021 the following occurred:
1. Lansbury Inc. sold part of its investment portfolio for $15,000 This transaction resulted in a gain of $3,400 for the firm. The company classifies its investments as available-for- sale.
2. A tract of land was purchased for $18,000 cash.
3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying $16,000 cash.
4. An additional $20,000 in common stock was issued at par.
5. Dividends totaling $8,200 were declared and paid to stockholders.
6. Net income for 2021 was $32,000 after allowing for depreciation of $11,000
7. Land was purchased through the issuance of $30,000 in bonds.
8. At December 31, 2021, Cash was $32,000 Accounts Receivable was $41,600 and Accounts Payable remained at $30,000
Requried:
a. Prepare a statement of cash flows for 2017.
b. Prepare an unclassified balance sheet as it would appear on December 31, 2017.
c. Compute two cash flow ratios.
Answer:
LANSBURY INC.
Statement of Cash Flows
For the year ended December 31, 2021
Cash flows from operating activities:
Net income $32,000
Adjustments to net income:
Depreciation expense $11,000- Gain on sale of investment portfolio ($3,400)- Increase in accounts receivable ($20,400) ($12,800)Net cash from operating activities $19,200
Cash flows from investing activities:
Sale of investment portfolio $15,000
Purchased land ($30,000)
Purchased land ($18,000)
Net cash from investing activities ($33,000)
Cash flow from financing activities:
Issuance of common stock $20,000
Issuance of bonds $30,000
Retirement of notes payable ($16,000)
Dividends paid ($8,200)
Net cash from financing activities $25,800
Net cash increase $12,000
Beginning cash balance $20,000
Ending cash balance $32,000
b. Prepare an unclassified balance sheet as it would appear on December 31, 2017.
LANSBURY INC.
Balance Sheet
For the year ended December 31, 2021
Assets:
Cash $32,000
Accounts receivable $41,600
Investments $20,400
Plant assets, net $70,000
Land $88,000
Total assets $252,000
Liabilities:
Accounts payable $30,000
Notes payable $25,000
Bonds payable $30,000
Total liabilities $85,000
Stockholders' Equity:
Common stock $120,000
Retained earnings $47,000
Total stockholders' equity $167,000
Total liabilities + equity $252,000
c. cash flow coverage ratio = operating cash flows / total liabilities = $19,200 / $85,000 = 0.23
current liability coverage ratio = operating cash flows / current liabilities = $19,200 / $30,000 = 0.64
Please help me!! I don’t understand :(
How did the recession influence the drug-naming process?
Answer:
Less economically stable countries implemented more pharmaceutical policy changes during the recession than economically stable countries. Unexpectedly, pharmaceutical sales volumes increased in almost all countries, whereas sales values declined, especially in less stable countries.
Hopefully this is right, there wasn't many articles on this topic.
The recession has caused many medications to be reformulated with cheaper ingredients that make them more affordable for the public. This reformulation forced a new name for medicines.
This happened because:
In times of economic recession, the entire economy of the country is deficient.This affects all industries in a very imposing way, as they can be left with poor economic conditions, which promotes a cost cut.One of the ways to promote this cost cut is with the reformulation of products, which start using alternative and cheaper materials in their compositions.This also makes the price of the product more accessible to consumers, since, in periods of recession, the consumer's purchasing power decreases.This reformulation process is very impactful on the pharmaceutical industry, since, in some cases, the change of materials in the composition of medications, forces the name of these medications to be changed, as the formulation is different.
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suppose that we are in butter market and the government implements an excise tax on butter. the price elasticity of demand for butter equals 2 and the price elasticity of supply for butter equals 2. what is the portion of the tax that consumers will be burdened with? is this realistic given the market we are in?
Answer:
Portion of tax burden shared by buyers (consumers) & sellers will be equal, ie half half each.
Explanation:
When an indirect tax, whose burden & incidence are on different people, (like excise tax) is levied : Its burden is borne more by buyers if demand is relatively more inelastic (or less elastic), & more by sellers if supply is relatively less inelastic (or less elastic).
Given, price elasticity of demand & supply both = 2 respectively. So, excise tax burden is shared by both buyer & sellers equally, as both demand & supply are equally price elastic.
On December 31, 2017, Wayne Sparks Company had 600,000 shares of common stock issued and outstanding. Sparks issued a 5% stock dividend on June 30, 2018. On September 30, 2018, 20,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2018
Answer: $625,000
Explanation:
The number of shares to use will be the Weighted average of the number of common shares in the company as at December 2018.
5% stock had been issued so common stock increases to;
= 600,000 * ( 1 + 5%)
= 630,000 shares
The treasury stock is to be deducted from the amount above and was only reacquired on Sept. 30 so the weighted average is;
= 20,000 * 3/12 months
= 5,000 shares
Number of shares = 630,000 - 5,000 = $625,000
Assuming the same interest rate, amount borrowed, and amortization period, which compounding (payment) period - monthly or annually - would result in less interest being paid by the borrower? Why?
Answer:
The shorter the payment period, the better for the borrower. Every time you make a payment, the principal decreases, so the next payment will include lower interests.
We can analyze this using an example:
You borrow $10,000, with a 12% interest rate and must pay it back in 3 years.
option A, 36 monthly payments
monthly payment = $10,000 / 30.10751 (PV annuity factor, 1%, 36 periods) = $332.14
total payments = $332.14 x 36 = $11,957.04
total interests paid = $1,957.04
option B, 3 annual payments
monthly payment = $10,000 / 2.40183 (PV annuity factor, 12%, 3 periods) = $4,163.49
total payments = $4,163.49 x 3 = $12,490.47
total interests paid = $2,490.47
On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,950. Inventory purchased during August was $192,730. Net sales for the month of August were $543,500. Assuming the company's typical gross profit ratio is 40%.
Required:
Estimate the amount of inventory destroyed in the flood.
Answer:
$82,580
Explanation:
We can calculate the estimated amount of inventory destroyed in the flood by deducting the cost of goods sold by the cost of goods available for sale.
DATA
Beginning Inventory = $215,950
Inventory purchased = $192,730
Sales = $543,500
Calculation
Inventory destroyed Iestimated) = Cost of Goods available for sale - Cost of Goods Sold
Inventory destroyed Iestimated) = $408,680 - $326,100
Inventory destroyed Iestimated) = $82,580
Working
Cost of Goods available for sale = Beginning Inventory + Inventory purchased
Cost of Goods available for sale = $215,950 + $192,730
Cost of Goods available for sale = $408,680
Cost of Goods Sold = Sales - Gross Profits
Cost of Goods Sold = $543,500 - ($543400 x 40%)
Cost of Goods Sold = $ 326,100
Burke Company has a break-even of $600,000 in total sales. Assuming the company sells its product for $40 per unit, what is its margin of safety in units if sales total $1,000,000
Answer:
The margin of safety in units is 10,000 units
Explanation:
The computation of the margin of safety in units is shown below:
The Margin of safety in units is
= Budgeted or actual sales - break even sales
= ($1,000,000 ÷ $40 per unit) - ($600,000 ÷ $40 per unit)
= 25,000 units - 15,000 units
= 10,000 units
Hence, the margin of safety in units is 10,000 units
On December 31, 2019, Main Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; December 1, $1,500,000. The building was completed in February 2021. Additional information is provided as follows.
1. Other debt outstanding 10.year, 13% bond, December 31, 2013, interest payable annually $4,000,000 6-year, 10% note, dated December 31, 2017, interest payable annually $1,600,000
2. March 1, 2020, expenditure included land costs of $150,000
3. Interest revenue earned in 2020 $49,000
Instructions:
Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.The amount of interest $SHOW LIST OF ACCOUNTSPrepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Date Account Titles and Explanation Debit CreditDecember 31, 2020
Answer:
A. Avoidable interest cost= $183,000
B. Dr Building 183, 000
Dr Interest expense 857,000
Cr Cash 1,040,000
Explanation:
A. Calculation to Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building
Expenditure 2020 Average investment
Mar-01 $ 360,000 *10//12= 300,000
Jun-01 $ 600,000* 7//12=350,000
Jul-01 $ 1,500,000 *6//12= 750,000
Dec-01 $ 1,500,000 *1//12= 125,000
Total Average investment $1,525,000
Loans Issued Actual interest cost
12% to finance construction $ 3,000,000 12/31/19 $360,000
(12%*3,000,000=360,000)
13% bond $ 4,000,000 years ago $ 520,000
(13%*4,000,000=520,000)
10% bond $ 1,600,000 years ago $ 160,000
(10%*1,600,000)
Total $1,040,000
Average investment = $1,525,000
Avoidable interest cost = $1,525,000* 12%
Avoidable interest cost= $183,000
B. Preparation of the journal entry to record the capitalization of interest and the recognition of interest expense
31/12/2020
Dr Building 183, 000
Dr Interest expense 857,000
(1,040,000-183,000)
Cr Cash 1,040,000
so what would you do if your friend expose you for being on brainly?
Answer:
Danm just know your doomed or just beg the person.
Explanation:
You are a management consultant with McKenzie and Company. You specialize in helping companies accurately identify and acquire the appropriate production inputs for their operations. Based on your extensive experience, you know that most production inputs fall into one or more of the following categories: materials and labor resources or information resources. However, the degree to which of these resources will be the dominant input depends on the type of business. In order to streamline your future projects, you have decided to put together a list of business types and their dominant category of production inputs. For each of the business types listed below, indicate which of the two production input categories would be most dominant for that business type.
a. Gold mining company
b. An online news publisher
c. Commercial bank
d. Automobile manufacturer
e. Accounting and bookkeeping firm
f. Food processing company
Answer:
a. Gold mining company - Materials and Labor resources
Gold mining company would need miners and mining equipment to to get to the gold so would fall under Materials and labor resources.
b. An online news publisher - Information resources
News is information on the current affairs of the world so the input here would fall under Online news publisher.
c. Commercial bank - Information resources
Banks need to know who they are giving loans to and this involves a lot of risk assessment which is information so this falls under information resources.
d. Automobile manufacturer - Materials and Labor resources
In an automobile manufacturer, the inputs would be the people assembling the cars and the materials needed to build the cars so this is under Materials and Labor.
e. Accounting and bookkeeping firm - Information resources
Accounting firms compile information they are given to make coherent reports of financial activity in a period so the input is informational.
f. Food processing company - Materials and Labor
Food processing requires inputs of food materials for processing and will need labor to do so. They can therefore be classified under Materials and Labor.
Explain the manufacturing sector
Answer:
The manufacturing sector, as defined by the U.S. government, “comprises establishments. engaged in the mechanical, physical, or chemical transformation of materials, substances, or. components into new products,” as well as those engaged in “assembling of component parts of.
Explanation:
Why is it difficult for products to "cross the chasm"? Because the product does not appeal to visionaries. Because the product has a brand name that does not translate well to other countries. Because the product's positioning strategy is not consistent with prior product releases. Because the product's value proposition may attract visionaries but may never get acceptance in the mass market.
Answer:
Because the product's value proposition may attract visionaries but may never get acceptance in the mass market.
Explanation:
The cross the charm refers to a charm that is existed after selling the product to the early adopters also at the same time the sales reached to plateau while on the other hand the growth next stage is to be done so that the product could be reached to the masses
Therefore as per the given situation, the last option is appropriate
And, the same is to be considered
denver company issued bonds with a face value of 100,000 and stated interest rate of 8%. the bonds have a life of five years and were sold at 102 1/2. if denver amoritizes discounts and premiums using the straight line method, the amount of interest expense each full year would be
Answer:
$7,500
Explanation:
Calculation for the amount of interest expense each full year
First step is to calculate the the annual interest
Annual interest =$ 8,000
($100,000*8%)
Second step is to calculate the premium paid
Premium paid=$ 2,500
($ 100,000 * 2.5%)
Third step is to calculate the Amortization of premium
Amortization of premium=$500
( $2,500 / 5years )
Last step is to calculate the interest expenses using this formula
Interest expenses=Annual interest-Amortization of premium
Let plug in the formula
Interest expenses ($8,000 - $500 )
Interest expenses= $ 7,500
Therefore the amount of interest expenses each full year would be $7,500
when is y'all birthday i'm trying to see if i have the same birthday as somebody
Answer:
6th October, when is yours..?
Pyramid Products Company has a revolving credit agreement with its bank. The company can borrow up to $1 million under the agreement at an annual interest rate of 9 percent. Pyramid is required to maintain a 10 percent compensating balance on any funds borrowed under the agreement and to pay a 0.5 percent commitment fee on the unused portion of the credit line. Assume that Pyramid has no funds in the account at the bank that can be used to meet the compensating balance requirement. Determine the annual financing cost of borrowing each of the following amounts under the credit agreement:
a. $250,000
b. $500,000
c. $1,000,000
Answer:
a. $250,000
if you borrow $250,000, you will only get $225,000, but you will still have to pay interest for the whole amount, so total interest charge = $250,000 x 9% = $22,500. Additionally, you must pay $750,000 x 0.5% for the unused portion = $3,750.
total interests charged = $26,250 / $250,000 = 10.5%
b. $500,000
if you borrow $500,000, you will only get $450,000, but you will still have to pay interest for the whole amount, so total interest charge = $500,000 x 9% = $45,000. Additionally, you must pay $500,000 x 0.5% for the unused portion = $2,500.
total interests charged = $47,500 / $450,000 = 10.56%
c. $1,000,000
since you need to have at least 10% in the bank, if you borrow $1,000,000, you will only get $900,000. So you cannot actually borrow $1 million, your net borrowing = $900,000. But you will still have to pay interest for the whole amount, so total interest charge = $1,000,000 x 9% = $90,000.
total interests charged = $90,000 / $900,000 = 10%
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.3 percent indefinitely. The company just paid a dividend of $3.26 and you feel that the required return on the stock is 10.5 percent. What is the price per share of the company's stock
Answer: $54.84
Explanation:
Here, the price per share will be calculated as per the constant growth formula : Price = (Dividend x (1+growth rate)) ÷ (return rate - growth rate)
Dividend $3.26 , growth rate = 4.3%=0.043 , return rate = 0.105
[tex]\text{Price}=\dfrac{3.26\times(1+0.043)}{0.105-0.043}\\\\=\dfrac{3.26\times(1.043)}{0.062}\\\\=\dfrac{3.40018}{0.062}\approx\ \$54.84[/tex]
Hence, the price per share of the company's stock = $54.84
The three options for soliciting business from potential suppliers are:_______.
a. request for information (RFI), request for quotation (RFQ) and request for proposal (RFP)
b. request for quotation (RFQ), request for proposal (RFP) and request or invitation for bid (RFB or IFB)
c. request for quotation (RFQ), request for confirmation (RFC) and request for proposal (RFP)
d. request for information (RFI), request for proposal (RFP), and request or invitation for bid (RFB or IFB)
e. request for quotation (RFQ), request for price (RFP), and request or invitation for bid (RFB or IFB)
Answer:
Option b. is correct
Explanation:
Potential Supplier refers to any person that submits a Tender with respect to response to the Invitation to Tender.
Purpose of RFI is to collect written information about the capabilities of different suppliers.
RFQ is a kind of procurement solicitation in which the outside vendors are asked by a company to offer a quote for the completion of a specific project.
The three options for soliciting business from potential suppliers are request for quotation (RFQ), request for proposal (RFP) and request or invitation for bid (RFB or IFB).
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.
Production Data
June
Beginning work in process units 0
Units started into production 22,660
Ending work in process units 2,060
Percent complete—ending inventory 40 %
Cost Data
Materials $203,940
Labor 55,208
Overhead 116,184
Total $375,332
Prepare a schedule showing physical units of production.
Answer and Explanation:
The preparation of schedule showing physical units of production is prepared below:-
Rosenthal Company
Physical units of production
For the year June 2020
Units to be accounted for:
Work in process, June 1: -
Started into production 22,660 units
Total units 22,660
Units to be accounted for:
Transferred out 20,600 (22,600 - 2,060)
Work in process, June 30 2,060 units
Total units 22,660 units
At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations:_____.
1. Estimated warranty expense, $40 million temporary difference: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty).
2. Depreciation expense, $120 million temporary difference: straight-line in the income statement; MACRS on the tax return.
3. Income from installment sales of properties, $60 million temporary difference: income recorded in the year of the sale; taxable when received equally over the next five years.
4. Rent revenue collected in advance, $40 million temporary difference; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year.
Required: Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 25%. (Enter your answer In millions (I.e., 10,000,000 should be entered as 10).)
_______ million
Answer and Explanation:
The computation is shown below:
Net deferred tax liability is
= (Taxable temporary differences - Deductible temporary differences) × Tax rate
= ($120 million + $60 million - $40 milllion - $40 million) × 25%
= $25 million
Hence, it shows the net deferred tax liability of $25 million and the same is to be considered