For the year, Jensen's has depreciation of $2,058, dividends paid of $125, interest expense of $382, an addition to retained earnings of $3,408, and an increase in common stock of $2,500. The total tax rate is 21 percent. What is the operating cash flow

Answer:

$5,973

Explanation:

The computation of operating cash flow is seen below;

Net income = $125 + $3,408 = $3533

Net income $3,533 - Interest expense $382 - Depreciation $2,058 = EBIT $1,093

Tax = 21% × $1,093 = $229.53

Operating cash flow = $1,093 + $2,058 + $2,700 - $229.53 = $5,973

You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1,405.5. The contract size is 100 ounces and the quotes are expressed in dollars and cents per ounce. What is your current profit or loss on this investment?
a. $912.00.
b. $4,300.00.
c. −$43.00.
d. −$4,300.00.
e. −$912.00.

Determine how the following scenarios affect the firm's cash position. Identify whether the scenario describes a financing, investing, or operating activity (as defined on the Statement of Cash Flows). Scenario Operating Activity Investing Activity Financing Activity Sell a tract of land it has held for years Pay preferred stock dividends Increase accrued liabilities Sell some old equipment Issue shares of common stock Increase inventory holdings Buy property for a future factory Now, indicate which of the scenarios below are expected to increase a company's cash flow. Check all that apply. Increase accrued liabilities Increase inventory holdings Sell some old equipment Issue shares of common stock Pay preferred stock dividends

The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2001 as the base year.
Year 2000 2001
Price Quantity Price Quantity
Ice Cream $7.00 600 $3.00 400
Blue Jeans $70.00 20 $20.00 90
Laptops $300.00 5 $300.00 5
2000 nominal GDP = $_________
2001 nominal GDP = $_________
2000 real GDP = $_________
2001 real GDP = $_________

Under absorption costing, which of the following costs would not be included in finished goods inventory?
Oa. variable and fixed factory overhead cost
Ob. variable and fixed selling and administrative expenses
Oc. direct labor cost
Od. direct materials cost

22) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S. has been 4% greater than that in Canada. Based on the theory of Relative PPP, the current spot exchange rate of U.S. dollars for Canadian dollars should be approximately ________. A) $0.96/C$ B) $1/C$1 C) $1.04/C$1 D) relative PPP provides no guide for this type of question

homeworklib Assume the following for White Top Inc. for the current fiscal year. White Top applies overhead on the basis of units produced. Budgeted overhead $ 200,000 Actual overhead $ 222,000 Actual labor hours 15,000 Actual number of units sold 43,000 Underapplied overhead $ 20,000 Budgeted production (units) 50,000 Required: How many units were produced in the current fiscal year

wifty Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1820 shares of Teal Mountain Company (10%) for $46410 cash. June 1 Received cash dividends of $2 per share on Teal Mountain stock. Oct. 1 Sold 1240 shares of Teal Mountain stock for $33480. The entry to record the receipt of the dividends on June 1 would include a

Matrix Inc. calculates cost for an equivalent unit of production using both the weighted-average and the FIFO methods.
Data for July:
Work-in-process inventory, July 1 (36,000 units):
Direct materials (100% completed) $122,400
Conversion (50% completed) 76,800
Balance in work in process inventory, July 1 $199,200
Units started during July 90,000
Units completed and transferred 102,000
Work-in-process inventory, July 31:
Direct materials (100% completed) 24,000
Conversion (50% completed)
Cost incurred during July:
Direct materials $180,000
Conversion costs 288,000
Cost per equivalent unit for conversion under the FIFO method is calculated to be:__________
(please provide step by step solution for further understanding)
a) $2.40.
b) $3.20.
c) $3.00.
d) $3.10.
e) $2.00.

Binder Corporation agreed to build a warehouse for a client at an agreed contract price of $4,000,000. Expected (and actual) costs for the warehouse follow: 2017, $640,000; 2018, $1,600,000; and 2019, $800,000. The company completed the warehouse in 2019. Compute net income for each year 2017 through 2019 using the cost-to-cost method. a. 2017: $200,000 2018: $520,000 2019: $240,000 b. 2017: $640,000 2018: $1,600,000 2019: $800,000 c. 2017: $0 2018: $0 2019: $960,000 d. 2017: $320,000 2018: $320,000 2019: $320,000

Rafael transfers the following assets to Crane Corporation in exchange for all of its stock.
Note: Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation.
Assets Rafael's Adjusted Basis Fair Market Value
Inventory $60,000 $100,000
Equipment 150,000 105,000
Shelving 80,000 65,000
Note: If an amount is zero, enter "0". Do not round any division.
a. Rafael's realized _________________ is $ _________________ . Of this amount, $ _________________ is recognized.
b. Assuming no election is made, Rafael's basis in the stock is $ _________________ .
c. Crane's basis is $ _________________ for inventory, $ _________________ for equipment, and $ _________________ for shelving.
d. If Rafael plans to hold his stock for a substantial period of time, he and Crane may elect to allow Crane _________________ a carryover basis in the assets received. Its basis in the assets would also change to $ _________________ for inventory, $ _________________ for equipment, and $ _________________ for shelving.

In 2008, Betserai was a 10-year-old quintrillionaire living in Bulawayo, Zimbabwe. He was literally rolling in money. In fact, Betserai has so much money that he decided to make kites out of billion dollar bills instead of putting the money into the bank to earn interest. None of Betserai's friends bothered to save their money, either. Rupert was Betserai's American pen pal and heard of Betserai's story and was extremely confused. He was taught that Zimbabwe was one of the poorer countries in the world, or at the least substantially poorer than the United States. Which statement best explains this phenomenon?
A. A country's wealth is based on the amount of money in circulation.
B. Zimbabwe was in the midst of an incredible economic boom, substantially increasing the wealth of all its citizens.
C. Rapid rises in price levels made the Zimbabwean dollar near worthless in terms of purchasing power.
D. All of these statements could explain what happened in Zimbabwe in 2008.

Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for Mario Brothers. Assume the discount rate for Mario Brothers is 10 percent.
a. What is the payback period for each project?
b. What is the NPV for each project?
c. What is the IRR for each project?

Suppose the statutory incidence were instead on the consumers. Calculate the new equilibrium price and quantity in the market. In that case, the dollar portion of the $0.75/drink tax that is borne by consumers is $ . The dollar portion of the $0.75/drink that that is borne by producers is $ .

Linda Davis is a divorced parent who maintains a home for a 13 year old daughter. Linda earns $65,000 per year from her job. She has itemized deductions of $14,000. She also pays $1,500 in student loan interest from a college loan. What is Linda's Adjusted Gross Income (AGI)

The following transactions took place for Tanaka company in June: Purchased equipment on account for $9,800. Billed customers $5,600 for services performed. Made payment of $2,400 on account for equipment purchased earlier in month. Collected $3,900 on customer accounts. What are the Accounts Payable and Accounts Receivable balances at June 30, 2016

What happens to your employer-sponsored retirement plan if you decide to change employers?

Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee* and Employer HI: 1.45% No limit No maximum
Self-employed OASDI: 12.4% $127,200 $15,772.80
Self-employed HI: 2.9% No limit No maximum
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
If the third decimal place is 5 or more, round to the next higher cent.
If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Jax Company's (a monthly depositor) tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $1,210. No deposit was made by the company until August 24, 20--. Determine the following:
Note: Round your answers to the nearest cent and assume 365 days in a year.
a. The date by which the deposit should have been made August 25
b. The penalty for failure to make timely deposit $________
c. The penalty for failure to fully pay tax when due $________
d. The interest on taxes due and unpaid (assume a 4% interest rate) $________

The management of Krach Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 13,000 machine-hours. Capacity is 19,000 machine-hours and the actual level of activity for the year is assumed to be 9500 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $22,800 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes

The Beckham Company has the following information about their activity cost pools: Activity Cost Pools Total Overhead Cost Total Activity Machine Setups $ 125,000 5,000 setups Customer Orders $ 200,000 1,250 orders Product Design $ 300,000 2,500 product design hours The activity rate for machine setups is ________. multiple choice $125,000 $0.04 per setup $10 per setup $25 per setup

Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000
Universal's equivalent-unit cost for conversion cost is:____.
a. $4.50.
b. $6.00.
c. $8.00.
d. $9.60.
e. some other amount.

In 2019, Martin had two employers during the year. Both employers withheld Social Security tax from his wages in the amounts of $4,314.05 and $4,274.75. What amount can Martin claim as a credit against his income tax when he files his income tax return

Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues $fill in the blank f6cd0703e073f92_2 Cost of goods sold fill in the blank f6cd0703e073f92_4 Gross profit $fill in the blank f6cd0703e073f92_6 Operating expenses: Selling expenses $fill in the blank f6cd0703e073f92_8 Administrative expenses fill in the blank f6cd0703e073f92_10 Total operating expenses fill in the blank f6cd0703e073f92_11 Net income $fill in the blank f6cd0703e073f92_13

Sumner sold equipment that it uses in its business for $31,200. Sumner bought the equipment a few years ago for $79,400 and has claimed $39,700 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss

Planes frequently push back from the gate on time, but then wait 2 feet away from the gate until it is time to queue up for takeoff. This increases fuel consumption, and increases the time that passengers must sit in a cramped plane awaiting takeoff.
Which of the following performance metrics would, if emphasized in evaluations, incentivize airlines to engage in such practices?
A. A performance metric that measures customer satisfaction, based on customer comfort while on the plane
B. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the flight is boarded and away from the gate by the scheduled departure time
C. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the plane takes off by the scheduled departure time.

These are selected 2017 transactions for Flounder Corporation: Jan. 1 Purchased a copyright for $110, 750. The copyright has a useful life of 5 years and a remaining legal life of 33 years. Mar. 1 Purchased a patent with an estimated useful life of 6 years and a legal life of 20 years for $138, 600. Sept. 1 Purchased a small company and recorded goodwill of $153, 350. Its useful life is indefinite.
Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automatically indented when the 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.)

The town clerk receives the mail for the Town of Charity, every day. Included in the mail are utility payments, both in cash and check form. The amount of money taken in by the Utility Department is lower than it should be. The Utility Department also takes in checks and cash on a daily basis. No customer has complained that they are not credited for payment of their bill. Different people make the ledger entries in the Utility Department Office. Different people make the bank deposits. How did she commit the fraud

Miguel Alvarez in the accounting department at Baumer Company has provided the following information:

Cost per Unit Cost per Period
Direct materials $6.25
Direct labor $3.20
Variable manufacturing overhead $1.20
Fixed manufacturing overhead $13,200
Sales commissions $1.20
Variable administrative expense $0.50
Fixed selling and administrative expense $3,300

The incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to:_____

High Desert Pottery works makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning Of the year, the company provided the following estimates:

Direct labor-hours 36,500 50,100
Machine-hours 87,000 32,000
Fixed manufacturing overhead cost $174,000 $445,890
Variable manufacturing overhead per machine-hour $3.20 -
Variable manufacturing overhead per direct labor-hour - $5.20

Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:

Department
Molding Painting
Direct labor-hours 76 132
Machine-hours 350 66
Direct materials $938 $1,220
Direct labor cost $720 $1,020

Required:
a. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.
b. Compute the total overhead cost applied to Job 205.
c. What would be the total manufacturing cost recorded for Job 205?
d. If the job contained 22 units, what would be the unit product cost?

International data show a positive correlation between income per person and the health of the population.
True or False: Individuals with higher incomes have better access to clean water, medical care, and good nutrition, and healthier individuals are likely to be more productive than sick ones.

At Medallion Industries, variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced. What is the expected total cost of the units produced at Medallion, if instead, production is actually 5,100 units