Answers
Answer:
The information about Abiyote's investment is missing, so I looked for similar questions:
Abiyote's time weighted rate of return = [(1 + HP₁ ) x (1 + HP₂) x (1 + HP₃)]¹/³ - 1
HP₁ = ($28,212 - $24,500) / $24,500 = 0.1515
HP₂ = ($15,892 - $18,212) / $18,212 = -0.1274
HP₃ = ($30,309 - $23,892) / $23,892 = 0.2686
TWRR = [(1.1515 x 0.8726 x 1.2686)¹/³ - 1 = 0.08426 = 8.43%
You calculate TWRR in the same way as you calculate geometric mean.
Related Questions
Managers and leaders perform many tasks as a result of their goals and objectives. Even though many tasks may be completed as a result of their responsibilities, each task may be categorized into one of four functions of management. Management is a process. This process is what allows managers and leaders to achieve organizational and personal goals. Included within this process are four functions of management. These four functions include planning, organizing, leading, and controlling. Each of these functions is an important aspect of the management process and must be implemented to achieve organizational goals.
Click and drag each item into the correct spot within the chart. Each item is one of the four functions of management.
Paul Santago Planning Organizing
Matthew Chloe
Kely Tomasz Leading Controlling
Ava Michele
Reset
Answers
Hi, your question is incomplete and unclear. However, I provided a brief explanation of the four(4) functions of management.
Explanation:
Planning function: The planning function basically involves the manager's role in setting objectives or goals and determining what course of action his organization should take in other to achieve the set objectives. Organizing function: The organizing function of management requires that managers (management) develop an effective organizational structure that fits into the organization, such as placing the right people on the job in other to ensure the accomplishment of the organization's objectives. Leading function: This function involves how the social influence of managers can inspire their employees to take needed action in other to achieve organizational objectives.Controlling function: This function requires managers to basically:set performance standards for employeescompare actual performance against set standardsif performance fails to meet set standards, take corrective action.On December 31, 2019, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
Contract price $520 million
Estimated construction costs $300 million
Estimated total profit $220 million
During the three-year construction period, Tri-State incurred costs as follows:
2020 $60 million
2021 $150 million
2022 $90 million
Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the profits recognized in 2020, 2021, and 2022?
a. $52 million, $312 million, $156 million
b. $12 million, $72 million, $36 million
c. $140 million, $140 million, $140 million
d. $30 million, $180 million, $90 million
e. None of the above
Answers
Answer:
2020 - $44 million
2021 - $110 million
2022 - $66 million
Explanation:
Using the percentage of completion method, the profit for the year will be the percentage of the total estimated costs incurred in that year multiplied by the estimated total profit of the contract.
2020
= (60/300) * 220
= $44 million
2021
= (150/300) * 220
= $110 million
2022
= (90/300) * 220
= $66 million
The options are not for this question.
Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows (the amounts are rounded to thousands of dollars to simplify):
Account Titles Debit Credit
Cash $ 6
Accounts Receivable 2
Supplies 2
Equipment 10
Accumulated Depreciation $3
Software 8
Accumulated Amortization 3
Accounts Payable 6
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Taxes Payable 0
Deferred Revenue 0
Common Stock 13
Retained Earnings 3
Service Revenue 0
Depreciation Expense 0
Amortization Expense 0
Salaries and Wages Expense 0
Supplies Expense 0
Interest Expense 0
Income Tax Expense 0
Totals $28 $28
Transactions during 2018 (summarized in thousands of dollars) follow:
Borrowed $13 cash on July 1, 2018, signing a six-month note payable.
Purchased equipment for $16 cash on July 2, 2018.
Issued additional shares of common stock for $6 on July 3.
Purchased software on July 4, $2 cash.
Purchased supplies on July 5 on account for future use, $8.
Recorded revenues on December 6 of $47, including $9 on credit and $38 received in cash.
Recognized salaries and wages expense on December 7 of $21; paid in cash.
Collected accounts receivable on December 8, $8.
Paid accounts payable on December 9, $9.
Received a $2 cash deposit on December 10 from a hospital for a contract to start January 5, 2019.
Data for adjusting journal entries on December 31:
Amortization for 2018, $3.
Supplies of $2 were counted on December 31, 2018.
Depreciation for 2018, $3.
Accrued interest of $1 on notes payable.
Salaries and wages incurred but not yet paid or recorded, $4.
Income tax expense for 2018 was $3 and will be paid in 2019.
Record journal entries for transactions (a) through (j).
Cash 13
Notes-payable (short term) 13
Equipment 16
Cash 16
Cash 6
Common Stock 6
Software 2
Cash 2
Supplies 8
Accounts Payable 8
Accounts Receivable 9
Cash 38
Service Revenue 47
Salaries and Wages Expense 21
Cash 21
Cash 8
Accounts Receivable 8
Accounts Payable 9
Cash 9
Cash 2
Deferred Revenue 2
Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry.
Prepare an unadjusted trial balance and a trial balance.
Answers
Question attached
Answer and Explanation:
Find attached
We would like to invest $10,000 into shares of companies XX and YY.
Shares of XX cost $20 per share. The market analysis shows that their expected return is $1 per share with a standard deviation of $0.5.
Shares of YY cost $50 per share, with an expected return of $2.50 and a standard deviation of $1 per share.
Returns from the two companies are independent. In order to maximize the expected return and minimize the risk (standard deviation or variance), is it better to invest
a. All $10,000 into XX
b. All $10,000 into YY
c. $5,000 into each company
Answers
Answer:
c. $5,000 into each company
Explanation:
Let X be the actual (random) return from each share of XX, and Y be the actual return from each share of YY. Computing the returns from each option:
A) Investing $10,000 into XX
Given that variance = (standard deviation)²
Since XX cost $20 per share, only 500 shares can be bought.
Expected value = 500 * E(x) = 500 * 1 = 500
Variance = 500² * Var(x) = 500² * 0.5² = 62500
B) Investing $10,000 into YY
Since YY cost $50 per share, only 200 shares can be bought.
Expected value = 200 * E(y) = 200 * 2.5 = 500
Variance = 200² * Var(y) = 200² * 1² = 40000
C) Investing $5,000 into each company
Since XX cost $20 per share and YY cost $50 per share, only 250 shares of XX and 100 shares of YY can be bought.
Expected value = 250 * E(x) + 100 * E(y) = 250 * 1 + 100 * 2.5 = 500
Variance = 250² * Var(x) + 100² * Var(y) = 250² * 0.5² + 100² * 1 = 25625
Since all options have the same expected return, but option C has the lowest variance hence it is the least riskiest. So the best option is C
Christiansen Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 70,000 machine-hours Order Processing 500 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and Salaries $420,000 Depreciation 160,000 Occupancy 200,000 Total $780,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and Salaries 60% 20% 20% 100% Depreciation 5% 60% 35% 100% Occupancy 25% 50% 25% 100%
The activity rate for the Order Processing activity cost pool is closest to:_______.
A. $312 per order
B. $676 per order
C. $780 per order
D. $560 per order
Answers
Answer:
D. $560 per order
Explanation:
For computing the activity rate first determine the total allocation cost which is shown below:
The Total allocation cost is
= Wages & salaries + depreciation + occupancy
= $420,000 × 20% + $160,000 × 60% + $200,000 * 0.50
= $84,000 $96,000 + $$100,000
= $280,000
Now the activity rate is
= $280,000 ÷ 500 orders
= $560 per order
hence, the option D is correct
Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your academic and career success.
Answers
Answer:
Explanation:
e concepts or strategies presented in this class
Which option enables you to keep the last grammatical change?
Answers
Answer:
Undo Option
Explanation:
The Accept option enables you to keep the last grammatical change in Microsoft Word.
A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:
Answers
Answer:
$2,400
Explanation:
For par stated shares, any amount paid in excess of the par value is called paid-in capital in excess of par and is included in shareholders equity reserves.
So, from the total price remove the par value price of 130 shares to determine the paid-in capital in excess of par.
Paid-in capital in excess of par = Total Paid - Price at Par
= $15,400 - (130 shares × $100)
= $2,400
The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,000. The following items were not included in this inventory:
1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,200, freight costs $200.
2. Goods out on consignment to Marlman Company, sales price $5,600, shipping costs of $200.
3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are in transit.
4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price.
5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190.
Required:
Determine the cost of the ending inventory that Reddall should report on its December 31, 2016, balance sheet, assuming that its selling price is 140% of the cost of the inventory.
Answers
Answer: $103,830
Explanation:
Ending Inventory = Inventory on hand + Purchased goods shipping point + Goods out on consignment + Goods sold FOB Destination
Selling price of goods is 140% cost of inventory so sales figures will have to be divided by 140% to get the inventory figure.
Purchased goods shipping point
= 4,200 + 200 = $4,400
Goods out on Consignment
= (5,600 / 140%) + 200 = $4,200
Goods sold FOB Destination
= (1,900 - 178) / 140% = $1,230
Ending Inventory
= 94,000 + 4,400 + 4,200 + 1,230
= $103,830
Goods Purchased FOB Destination are not to be included as they are still the responsibility of the seller. Goods held on consignment should not be included either.
Danner Company expects to have a cash balance of $58,050 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows.Collections from customers: January $109,650, February $193,500.Payments for direct materials: January $64,500, February $96,750.Direct labor: January $38,700, February $58,050. Wages are paid in the month they are incurred.Manufacturing overhead: January $27,090, February $32,250. These costs include depreciation of $1,935 per month. All other overhead costs are paid as incurred.Selling and administrative expenses: January $19,350, February $25,800. These costs are exclusive of depreciation. They are paid as incurred.Sales of marketable securities in January are expected to realize $15,480 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,250. The company wants to maintain a minimum monthly cash balance of $25,800.Prepare a cash budget for January and February.
Answers
Answer:
January February
Beginning Cash Balance 58,050 35,475
Add: Receipts
Collections from Customers 109,650 193,500
Sale of Marketable Securities 15,480 0
Total Receipts 125,130 193,500
Total Available Cash 183,180 228,975
Less: Disbursements
Direct Materials 64,500 96,750
Direct Labour 38,700 58,050
Manufacturing Overhead 25,155 30,315
Selling and Administrative 19,350 25,800
Total Disbursements 147,705 210,915
Cash Balance 35,475 18,060
Financing
Add: Borrowings 0 7,740
Less: Repayments 0 0
Ending Cash Balance 35,475 25,800
The company wants to maintain a minimum monthly cash balance of $25,800 so in February they will have to borrow;
= 25,800 - 18,060
= $7,740
And the circular flow model which part of the economy provides products to households
Answers
Answer: product markets
Explanation:
Answer:
Products Markets
You just deposited $3,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now
Answers
Answer:
Total FV= $16,599.29
Explanation:
We will calculate each investment separately, and then the total future value.
FV= PV*(1+i)^n
Deposit 1:
PV= 3,000
n= 12
i= 0.04/4= 0.01
FV= 3,000*(1.01^12)
FV= $3,380.48
Deposit 2:
PV= $5,000
n= 8
i= 0.01
FV= 5,000*(1.01^8)
FV= $5,414.28
Deposit 3:
FV= 7,500*(1.01^4)
FV= $7,804.53
Total FV= $16,599.29
At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $ 3,360: inventory $ 3,500: and Common Stock $ 6,860. The following transactions were completed during April 2017.Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $ 1,500, terms 3/10, n/60.7 Paid freight on Arnie purchase $ 80.9 Received credit from Arnie Co. for merchandise returned $700.10 Sold merchandise on account to members $1,420, terms n/30. The merchandise sold had a cost of $ 770.12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $ 1,060, terms 2/10, n30.14 Paid Arnie Co. in full.17 Received a credit from Woods Sportswear for merchandise returned $60.20 Made sales on account to members $ 820, terms n/30. The cost of the merchandise sold was $550.21 Paid Woods Sportswear in full.27 Granted an allowance to members for clothing that did not fit properly $70.30 Received payments on account from members $1,370.1. Journalize the April transactions using a perpetual inventory system.2. Prepare an income statement through gross profit for the month of April 2017.
Answers
Answer:
Journal Entries
Date Account Titles & Explanation Debit Credit
Apr 5 Purchases $1,500
Accounts Payable $1,500
Apr 7 Freight-in $80
Cash $80
Apr 9 Accounts Payable $700
Purchase Returns and Allowances $700
Apr 10 Accounts receivable $1,420
Sales $1,420
Apr 10 Cost of goods sold $770
Inventory $770
Apr 12 Purchases $1,060
Accounts Payable $1,060
Apr 14 Accounts Payable $800
($1500-$700 )
Purchase Discounts $24
($800 * 3%)
Cash $776
Apr 17 Accounts Payable $60
Purchase Returns and Allowances $60
Apr 20 Accounts receivable $820
Sales $820
(To record credit sales)
Apr 20 Cost of goods sold $550
Inventory $550
Apr 21 Accounts Payable (1060-60) $1,000
Purchase Discounts $20
($1000 * 2%)
Cash $980
Apr 27 Sales Returns and Allowances $70
Accounts Receivable $70
Apr 30 Cash $1,370
Accounts Receivable $1,370
Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage the management team to align their performance with organizational goals. In an attempt to minimize agency problems in a company (potential conflict of interest between the company's managers and shareholders), attractive compensation packages are created to retain and encourage managers. In the best interest of shareholders, compensation packages should be structured in a way such that managers have an incentive to maximize the___________ value of the company’s stock price.
Vision Tech is a software company based out of San Francisco. Its stockholders are mostly individual investors and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions In Vision Tech's stock, would direct shareholder intervention be more or less likely to motivate the firm's management?
a. Less likely
b. More likely
Answers
A $3.6 million state lottery pays $15,000 at the beginning of each month for 20 years. How much money must the state actually have in hand to set up the payments for this prize if money is worth 5.8%, compounded monthly
Answers
Answer:
Present Value= $2,128,538.66
Explanation:
Giving the following information:
Cash flow= $15,000
Number of periods= 20*12= 240
Interest rate= 0.058/12= 0.00483
First, we need to calculate the future value of the monthly payments:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV={15,000*[(1.00483^240) - 1]} / 0.00483
FV= $6,765,529.2
Now, the present value:
PV= FV/(1+i)^n
PV= 6,765,529.2 / 1.00483^240
PV= $2,128,538.66
You hit the lottery! You get offered $10 million now or $1 million a year for 13 years. Assume a 3 percent interest rate. Which would you choose and why
Answers
Answer:
I would choose to receive $1 million for 13 years because the present value of the cash flows is greater than 10 million
Explanation:
To determine which option i would choose, i have to calculate the present value of the second option
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 13 = $1 million
I = 3%
Present value = $10,634,955
I would choose to receive $1 million for 13 years because the present value of the cash flows is greater than 10 million - $10,634,955 > $10,000,000
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Option 2 should be considered since it contains more amount of present value as compared to option 1.
Calculation of the present value:
In option 1, it offered $10 million or $10,000,000
While in option 2, the interest rate is 3% and the time period is 13 years Also, the payment is $1 million
So here we need to determine the present value
PV = PMT x (1 - (1+i)-n / i )
PV = 1,000,000 x (1 - (1+0.03)-13 / 0.03 )
PV = 10,634,955.33
Based on this, the option 2 should be considered.
Learn more about rate here: https://brainly.com/question/25259175?referrer=searchResults
Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows:_______.
To Total
Department Department Labor
From Design Programming A B Hours
Design - 5,000 1,000 9,000 15,000
Programming 400 - 600 1,000 2,000
The costs in the two service departments are as follows:_______.
Design Programming
Labor and materials (all variable) $ 50,000 $ 36,000
Depreciation and other fixed costs 40,000 4,000
Total $ 90,000 $ 40,000
Required:1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method? (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)2. The company is considering outsourcing programming services to DDB Services Inc. for $52.00 per hour. Should Marin do this?Note: there's 2 requirements , please make sure you do both with explaination :)
Answers
Answer and Explanation:
A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $13 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.91 million per year for 20 years. The firm's WACC is 9%.Calculate each project's NPV. Round your answers to two decimal places. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55.Plan A $ millionPlan B $ millionCalculate each project's IRR. Round your answer to two decimal places.Plan A %Plan B %Graph the NPV profiles for Plan A and Plan B and approximate the crossover rate to the nearest percent.Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to the nearest hundredth.%
Answers
Answer:
Project A:
initial outlay -$40 million
cash flows $6.39 million for 20 years
PV of cash flows = $6,390,000 x 9.1285 (PV annuity factor, 9%, 20 periods) = $58,331,115
NPV = -$40,000,000 + $58,331,115 = $18,331,115 ≈ $18.33 million
IRR = 15%
Project B:
initial outlay -$13 million
cash flows $2.91 million for 20 years
PV of cash flows = $2,910,000 x 9.1285 (PV annuity factor, 9%, 20 periods) = $26,563,935
NPV = -$13,000,000 + $26,563,935 = $13,563,935 ≈ $13.56 million
IRR = 22%
Crossover rate = 11.4%
I solved the cross over rate the following way:
project A project B difference
-40 -13 -27
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
6,39 2,91 3,48
Using a financial calculator or excel spreadsheet, find the IRR of the difference and that is the crossover rate (discount rate at which both projects have the same NPV).
Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g.
a. Supplies are purchased on December 1 for $2,000 cash.
b. The company prepaid its insurance premiums for $1,540 cash on December 2.
c. 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 January.
e. 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 coverage had expired.
g. As of December 31, only one remodeling project has been worked on and completed. The $5,570 fee for this project had been received in advance and recorded as remodeling fees earned.
Answers
Answer:
Ricardo Construction
General Journal
a.
December 1
Supplies $2,000 (debit)
Cash $2,000 (credit)
Supplies Bought for Cash
b.
December 2
Prepaid Insurance Premium $1,540 (debit)
Cash $1,540 (credit)
Insurance Premium paid in advance
c.
December 15
Cash $13,000 (debit)
Deferred Revenue $13,000 (credit)
Cash received for services not yet performed
d.
December 28
Cash $3,700 (debit)
Deferred Revenue $3,700 (credit)
Cash received for services to be rendered
December 31 period-end entries
e.
Supplies Expense $160 (debit)
Supplies $160 (credit)
Supplies utilized during the year
f.
Insurance Expense $160 (debit)
Prepaid Insurance $160 (credit)
Insurance expired during the year
g.
Deferred Revenue $5,570 (debit)
Service Revenue $5,570 (credit)
Service revenue earned
Explanation:
See the journal entries and their narrations prepared above.
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Common stock, $6 par value, 120,000 shares authorized
Preferred stock, 11 percent, par value $13 per share, 5,000 shares authorized
During the year, the following transactions took place in the order presented:
a. Sold and issued 21,900 shares of common stock at $26 cash per share.
b. Sold and issued 2,800 shares of preferred stock at $30 cash per share.
c. At the end of the year, the accounts showed net income of $41,600. No dividends were declared.
Required:
Prepare the stockholders’ equity section of the balance sheet at the end of the year.
Answers
Answer and Explanation:
The preparation of the stockholder equity section is presented below:
Tandy Company
Balance Sheet (Partial)
Stockholders Equity :
Contributed Capital :
Common stock (21,900 shares × $6) $131,400
Preferred stock (5,000 shares × $13) $65,000
Additional Paid in Capital - Common stock (21,900 shares × $20) $438,000
Additional Paid in Capital - Preferred stock (5,000 shares × $17) $85,000
Total Contributed Capital $719,400
Add: Retained Earnings $41,600
Total Stockholders Equity $761,000
The following transactions occurred during a recent year:
a. Paid wages of $1,600 for the current period (example).
b. Borrowed $8,000 cash from local bank using a short-term note.
c. Purchased $3,200 of equipment on credit.
d. Earned $640 of sales revenue; collected cash.
e. Received $1,280 of utilities services, on credit.
f. Earned $2,700 of service revenue, on credit.
g. Paid $480 cash on account to a supplier.
h. Incurred $110 of travel expenses; paid cash.
i. Earned $640 of service revenue; collected half in cash, with balance on credit.
j. Collected $180 cash from customers on account.
k. Incurred $460 of advertising costs; paid half in cash, with balance on credit.
Required:
1. For each of the transactions, complete the table below, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example.
Assets = Liabilities + Stockholders' Equity
a Cash (1,600) Salaries & wages expense (1,600)
b Cash 8,000 Notes Payable (short-term) 8,000
c Equipment 3,200 Accounts Payable 3,200
d Cash 640 Sales revenue 640
e Accounts Payable 1,280 Utilities expense (1,280)
f Accounts Receivable 2,700 Service revenue 2,700
g Cash (480) Accounts Payable (480)
h Cash (110) Travel expense (110)
i Cash 320
Accounts Receivable 320 Service revenue 640
j Cash 180
Accounts Receivable (180)
k Cash (230) Accounts Payable 230 Advertising expense (460)
2. Determine the company's preliminary net income.
Answers
Answer:
1) I used an excel spreadsheet because there is not enough room here.
2) preliminary income = $530
preliminary earnings are $530.
What is a transaction?
Economic transactions involve the exchange of products, the provision of services (such as risk-taking and saving), and the movement of funds and other investments between nationals of different countries. The following two types of economic transactions.
The phrase can also be used to describe the entire group of consumers of a commodity or service. In a market, buyers and sellers come together to exchange goods and services. A country's economic exchanges with the rest of the world are summarized in the balance of payments.
The export and import of products, services, and financial assets, as well as transfer payments, are among these transactions (like foreign aid). For 'open' economies like Australia, the balance of payments is a crucial economic indicator.
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According to Joseph Schumpeter, what does economic progress depend on? A. technological change in the form of new products B. competition, especially price competition C. the initial endowment of economic resources, such as the amount of labor and capital available D. government protection of competition
Answers
Answer:
A. technological change in the form of new products
Explanation:
Joseph Schumpeter gave his economist theory of creative destruction which was a change-oriented and innovative based approach to enterprise ship was the central point of his work was capitalism. In areas of economic, industrial policy, and management studies.According to Joseph Schumpeter, the economy depends on technological change in the form of new products. Thus, the correct option is (A).
Schumpeterian growth is defined as economic growth that is driven by innovation and guided by the creative destruction process.
Formal economic models that operationalize Schumpeter's concept of creative destruction have been developed.
Joseph Schumpeter emphasizes the importance of the entrepreneur in bringing about change and adding innovative activities to an economy.
Furthermore, Schumpeter sees capitalism as a growing system, with his entrepreneur contributing to it.
Therefore, the correct option is "A".
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The annual worth for years 1 through infinity of $50,000 now, $10,000 per year in years 1 through 15, and $20,000 per year in years 16 through infinity at 10% per year is closest to
Answers
Answer:
The annual worth of cash flow is $17,394
Explanation:
The computation is shown below:
Present value = F × (P|F,i,n) + A × (P|A,i,n)
= $50,000 + $10,000 × (P|A,10%,15) + ($20,000 ÷ 0.1) × (P|F,10%,15)
= $50,000 + $10,000 × 7.606 + ($20,000 ÷ 0.1) × 0.2394
= $173,940
Now
Annual Worth is
= P × (A|P,i,n)
= $173,940 × (A|P,10%,infinity)
= $173,940 × 0.1
= $17,394
Hence, the annual worth of cash flow is $17,394
Joy is looking into many different career choices. She is leaning toward the Information Technology cluster. Why
would this be a better career choice than some of the other options she was looking into?
O IT jobs are projected to increase fourteen percent between 2010 and 2020.
O IT jobs are projected to increase twenty-two percent between 2010 and 2020.
O IT jobs are projected to increase thirty-five percent between 2010 and 2020.
O IT jobs are projected to increase forty-seven percent between 2010 and 2020.
Answers
Answer:
B
Explanation:
Because I took the unit test review on edge and got it right
Answer:
bbbbbbbbbbbbbbbbbbbbbbbbb
Explanation:
Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 1.90:1, and an acid-test ratio of 1.70:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
May 2 Purchased $75,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
10 Collected $26,000 cash on an account receivable.
15 Paid $29,500 cash to settle an account payable.
17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
26 Paid the dividend declared on May 22.
27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $135,000 cash by signing a long-term secured note.
29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
Answers
Answer:
Plum Corporation
(1) current ratio = Current assets/current liabilities
(2) acid-test ratio = (Current asset -Inventory)/Current liabilities
(3) working capital = Current assets minus Current liabilities
(4) acid-test assets = quick assets
May 2 Purchased $75,000 of merchandise inventory on credit.
Current Assets: $1,400,000 + $75,000 = $1,475,000
Current Liabilities: $737,000 + $75,000 = $812,000
Inventory: $147,000 +$75,000 = $222,000
(1) current ratio = $1,475,000/$812,000
= 1.82:1
(2) acid-test ratio = $1,475,000 - $222,000/$812,000
= 1.54:1
(3) working capital = Current Assets - Current Liabilities
= $1,475,000 - $812,000
= $663,000
May 8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
Current Assets: $1,475,000 -55,000 + 150,000 = $1,570,000
Current Liabilities: $812,000
Inventory: $222,000 - 55,000 = $167,000
Quick Assets = $1,570,000 - 167,000 = $1,403,000
(1) current ratio = $1,570,000/$812,000
= 1.93
(2) acid-test ratio = $1,403,000/$812,000
= 1.73
(3) working capital = $1,570,000 - $812,000
= $758,000
May 10 Collected $26,000 cash on an account receivable.
Current Assets: $1,570,000 ($26,000 - $26,000) = $1,570,000
Current Liabilities: $812,000
Inventory: 167,000
Quick Assets = $1,570,000 - 167,000 = $1,403,000
(1) current ratio = $1,570,000/$812,000
= 1.93
(2) acid-test ratio = $1,403,000/$812,000
= 1.73
(3) working capital = $1,570,000 - $812,000
= $758,000
May 15 Paid $29,500 cash to settle an account payable.
Current Assets: $1,570,000 - $29,500 = $1,540,500
Current Liabilities: $812,000 - $29,500 = $782,500
Inventory: 167,000
Quick Assets = $1,540,500 - 167,000 = $1,373,500
(1) current ratio = $1,540,500/$782,500
= 1.97:1
(2) acid-test ratio = $1,373,500/$782,500
= 1.76:1
(3) working capital = $1,540,500 - $782,500
= $758,000
May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
Current Assets: $1,540,500 - $5,000 = $1,535,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,535,500 - 167,000 = $1,368,500
(1) current ratio = $1,535,500/$782,500
= 1.96:1
(2) acid-test ratio = $1,535,500/$782,500
= $1.96:1
(3) working capital = $1,535,500 - $782,500
=$753,000
May 22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
Current Assets: $1,535,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,535,500 - 167,000 = $1,368,500
(1) current ratio = $1,535,500/$782,500
= 1.96:1
(2) acid-test ratio = $1,535,500/$782,500
= $1.96:1
(3) working capital = $1,535,500 - $782,500
=$753,000
May 26 Paid the dividend declared on May 22.
Current Assets: $1,535,500 -$69,000 = $1,466,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,466,500 - 167,000 = $1,299,500
(1) current ratio = $1,466,500/$782,500
= 1.87:1
(2) acid-test ratio = $1,299,500/$782,500
= 1.66:1
(3) working capital = $1,466,500 - $782,500
= $684,000
May 27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
Current Assets: $1,466,500 + $120,000 = $1,586,500
Current Liabilities: $782,500 + $120,000 = $902,500
Inventory: 167,000
Quick Assets = $1,586,500 - 167,000 = $1,419,500
(1) current ratio = $1,586,500/$902,500
= 1.76
(2) acid-test ratio = $1,419,500/$902,500
= 1.57
(3) working capital = $1,586,500 - $902,500
= $684,000
May 28 Borrowed $135,000 cash by signing a long-term secured note.
Current Assets: $1,586,500 + $135,000= $1,721,500
Current Liabilities: $902,500
Inventory: 167,000
Quick Assets = $1,721,500 - 167,000 = $1,554,500
(1) current ratio = $1,721,500/$902,500
= 1.91:1
(2) acid-test ratio = $1,554,500/$902,500
= 1.72
(3) working capital = $1,721,500 - $902,500
= $819,000
May 29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Current Assets: $1,721,500 - $255,000 = $1,466,500
Current Liabilities: $902,500
Inventory: 167,000
Quick Assets = $1,466,500 - 167,000 = $1,299,500
(1) current ratio = $1,466,500/$902,500
= 1.62:1
(2) acid-test ratio = $1,299,500/$902,500
= 1.44:1
(3) working capital = $1,466,500 - $902,500
= $564,000
Explanation:
a) Data and Calculations:
May 1, Current Assets = $1,400,000
Ratio of current assets to current liabilities = 1.90:1
Acid -test ratio = 1.70:1
Therefore, current liabilities = $1,400,000/1.9 = $737,000
Current Assets minus Inventory/$737,000 = 1.7
Therefore, current assets minus inventory = $737,000 * 1.7 = 1,253,000
Inventory = Current Assets - (Current assets -inventory)
= $1,400,000 - $1,253,000
= $147,000
Full Question attached
Answer and Explanation:
Find attached
Analyze the impact of transactions on the accounting equation (LO2-2)
Below are the external transactions for Shockers Incorporated.
1. Issue common stock in exchange for cash.
2. Purchase equipment by signing a note payable.
3. Provide services to customers on account.
4. Pay rent for the current month.
5. Pay insurance for the current month.
6. Collect cash from customers on account.
Assets = Liabillities + Stockholder's Equilty
1. Increase = No effect + Increase
2.
3.
4.
5.
6.
Required: Analyze each transaction. Under each category in the accounting equation, indicate whether the transaction increases, decreases, or has no effect. The first item is provided as an example.
Answers
Answer:
2. Increase = Increase + No effect
3. Increase = No effect + Increase
4. Decrease = No effect + Decrease
5. Decrease = No effect + Decrease
6. No effect = No effect + No effect
Explanation:
2. Purchase equipment by signing a note payable.
The double entry to record the purchase of equipment on credit will be as under:
Dr Equipment-Asset XX
Cr Note Payables-Liabilities XX
Hence the Asset will increase and the liabilities will also increase
2. Increase = Increase + No effect
3. Provide services to customers on account.
The double entry to record the provision of services to customers on account will be as under:
Dr Accounts Receivables-Asset XX
Cr Revenue -Stockholder's Equilty XX
Hence the Assets and Stockholder's Equilty of the company will be increased.
3. Increase = No effect + Increase
4. Pay rent for the current month.
The double entry would be:
Dr Rent Expense -Stockholder's Equilty XX
Cr Cash account - Assets XX
Both Assets account and Stockholder's Equilty will be decreased.
4. Decrease = No effect + Decrease
5. Pay insurance for the current month.
The double entry would be as under:
Dr Insurance Expense -Stockholder's Equilty XX
Cr Cash account - Assets XX
Both Assets account and Stockholder's Equilty will be decreased.
5. Decrease = No effect + Decrease
6. Collect cash from customers on account.
The double entry would be as under:
Dr Cash -Assets XX
Cr Accounts Receivables - Assets XX
The net difference is zero hence there will be no difference.
6. No effect = No effect + No effect
For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explain your answers.
a. Hulu and Netflix.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
Positive. They are close substitutes.
b. Tortilla chips and salsa.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
Positive. They are close substitutes.
c. Movie and popcorn.
Positive. They are close substitutes.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
d. Running shoes and high heels.
Negative. They are complements.
Positive. They are close substitutes.
Close to zero. While they are substitutes they are not close substitutes.
Answers
Answer:
a. Hulu and Netflix.
Positive. They are close substitutes
Hulu and Netflix both provides television shows, so a consumer can choose between them. They are good substitutes
b. Tortilla chips and salsa.
Negative. They are complements.
Tortilla chips are consumed with salsa sauce. So a demand for salsa increases so does demand for tortilla chips.
c. Movie and popcorn.
Negative. They are complements.
The more people watch movies the more they will want to buy popcorn.
d. Running shoes and high heels
Close to zero. While they are substitutes they are not close substitutes.
Each has its own time of use. Consumers by them independently.
Explanation:
Cross price elasticity is a measure of the quantity demanded of one good to changes in price of another good.
So when a good's demand reduces with increase in price of another it is negative cross price elasticity. This is common with complements.
When quantity demanded of a good increases with increase in price of another, they are substitutes.
However when there is little effect on the quantity demanded with increase in price of the other good they are unrelated
On June 3, Sweet Company sold to Chester Company merchandise having a sale price of $4,600 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $93, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.
Prepare journal entries on the Sweet Company books to record all the events noted above under each of the following bases.
(1) Sales and receivables are entered at gross selling price.
(2) Sales and receivables are entered at net of cash discounts.
Answers
Answer and Explanation:
The journal entries are shown below:
1 Accounts Receivable - Chester Company $4,600
Sales $4,600
(To record sales)
Cash $4,508
Sales Discounts $92 ($4,600 × 2%)
Accounts Receivable- Chester Company 4,600
(To record receiving of the payment)
2 Accounts Receivable - Chester Company $4,508 ($4,600 × 0.98)
To Sales $4,508
(To record sales)
Cash 4,508
To Accounts Receivable- Chester Company 4,508
(To record the payment received )
Cash 4,600
Accounts Receivable - Chester Company 4,508
Sales Discounts Forfeited 92
(To record the payment received )
At the end of fiscal year 2018, Haley Legal Services and Delicious Doughnuts reported these adapted amounts on their balance sheets (all amounts in millions except for par value per share): EEB (Click the icon to view the balance sheet data.) Assume each company issued its stock in a single transaction. Journalize each company's issuance of its stock, using its actual account titles. Explanations are not required. (Enter amounts in millions. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by joumalizing the Haley Legal Services common stock issuance.
Journal EntryData Table Accounts Debit Credit Milions Haley Legal Services Common stock, $0.01 par value, 2,400 shares issued S Additional paid-in capital 24 17,500 Delicious Doughnuts:
Common stock, no par value, 66 shares issued S 294
Answers
Answer:
Journal entry by Haley Legal services
Accounts title Debit Credit
Cash ($ 24 + 17500) $17,524
Common Stock $24
Additional Paid in Capital in excess of Par - Common Stock $17,500
Journal entry for Delicioy DOUGHNUT
Accounts title Debit Credit
Cash $294
Common Stock - nopar $294
Explanation:
Journal entry by Haley Legal services
Accounts title Debit Credit
Cash ($ 24 + 17500) $17,524
Common Stock $24
Additional Paid in Capital in excess of Par - Common Stock $17,500
Journal entry for Delicioy DOUGHNUT
Accounts title Debit Credit
Cash $294
Common Stock - nopar $294
The journal entry by Haley Legal services and Journal entry by Delicioy DOUGHNUT should be shown below.
Journal entry:by Haley Legal services
Accounts title Debit Credit
Cash ($ 24 + 17500) $17,524
Common Stock $24
Additional Paid in Capital in excess of Par - Common Stock $17,500
By Delicioy DOUGHNUT
Accounts title Debit Credit
Cash $294
Common Stock - nopar $294
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The adjusted trial balance of Dawson Company contained the following information. Assume the tax rate is 33%:
Debit Credit
Sales revenue $425,000
Sales returns and allowances $ 20,000
Sales discounts 5,000
Cost of goods sold 300,000
Operating expenses 61,000
Interest revenue 2,000
Interest expense 1,000
Compute the gross profit. rate(%)
Answers
Answer:
29.41%
Explanation:
Particulars Amount
Sales Revenue $425,000
Less: Cost of goods sold $300,000
Gross profit $125,000
Gross Profit rate(%) also known as gross profit margin percentage is calculated by (Revenue - Cost of goods sold)/Revenue
Gross profit margin percentage = $425,000 - $300,000 / $425,000
Gross profit margin percentage = $125,000 / $425,000
Gross profit margin percentage = 0.29412
Gross profit margin percentage = 29.41%