Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock.

a. Paid the stockholder a smaller dividend per share than another common stockholder.
b. Did not allow the stockholder to make decisions regarding hiring and firing employees.
c. Rejected the stockholder's request to vote via proxy because she was home sick.
d. The company did not provide all stockholders with timely financial reports.
e. In liquidation, paid the common shareholder after preferred stockholders were already paid.

Answers

Answer 1

Answer:

a. Paid the stockholder a smaller dividend per share than another common stockholder.

c. Rejected the stockholder's request to vote via proxy because she was home sick.

d. The company did not provide all stockholders with timely financial reports.

Explanation:

A shareholder is a person that has contributed to the equity of a company and holds shares as evidence of ownership.

Shareholders have right to recieve equal dividend as other common shareholders. There can only be a difference in dividend payouts when the other person has more shares.

They also have the right to vote via proxy in cases where they are not available. The proxy is duly appointed by the shareholder.

The company is also mandated to provide timely financial reports to all stockholders.

Shareholders however are not involved in daily running of the business. So they have no say in hiring and firing of employees.

Also common shareholders are paid dividend after preference share holders have been settled by the company.


Related Questions

An error understated Power Corporation​'s December​ 31, 2018​, ending inventory by​ $54,000. What effect will this error have on total assets and net income for 2018​?

Answers

Answer:

•The total Assets will be under stated by $54,000 in 2018.

•The Net income will also be understated by $54,000 in 2018.

Explanation:

In computing income statement, beginning inventory is usually added to net purchases, then minus ending inventory to arrive at cost of goods sold.

The cost of goods sold can also be computed as ;

Cost of goods sold = Beginning inventory + Net purchases - Ending inventory. What the above means is that if ending inventory is understated, then the cost of goods sold will be overstated.

The gross profit is arrived at by deducting cost of goods sold from net sales. So, if cost of goods sold is overstated, then the gross profit will be understated by same amount, whereas an overstated gross profit , will also over state net profit.

Inventory is an asset. When an inventory is understated, then the overall asset would also be understated by same amount.

McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn a margin of at least 30 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost.Manufacturing overhead for year 1 totaled $799,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following:
Chairs DesksSales revenue $1,240,000 $2,286,900Direct materials 587,000 830,000Direct labor 150,000 320,000Required:a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.Profit marginChairs ?%Desks ?%a-2. Which of the two products should be dropped?ChairsDesksb. Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $680,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)Estimated margin for desks- Year 2 ?%

Answers

Answer:

McNulty, Inc.

                                  Chairs        Desks

1. Margin on cost        25%            35%

2. Chairs should be dropped.

3. Margin for desks in Year 2 = 25%

Explanation:

a) Data and Calculations:

Expected margin = 30% = Gross profit/Product cost

Manufacturing overhead $799,000

                               Chairs        Desks

Sales revenue  $1,240,000  $2,286,900

Direct materials    587,000        830,000

Direct labor           150,000        320,000

Overhead             255,000        544,000

Product costs    $992,000    $1,694,000

Gross profit       $248,000      $592,900

Margin on cost        25%                35%

Expected margin     30%               30%

Expected Margin for desks in Year 2:

                               Desks

Sales revenue  $2,286,900

Direct materials     830,000

Direct labor            320,000

Overhead              680,000

Product costs    $1,830,000

Gross profit         $456,900

Margin on cost        25%

Expected margin    30%

McNulty's new CFO has made a bad decision.  Should the desks be eliminated also?  Decisions involving overhead costs should not be made lightly.   Detailed and precise information about the overhead costs should be obtained before a decision is taken on product elimination.  This case demonstrates the reason for not taking a hasty decision on an issue like this.

When an employee has perfect attendance for the month, he or she is given a $25 bonus. This would be an example of ________.

Answers

Answer:

An incentive

Explanation:

Incentive is simply said to be an action, belief and others that is made to alter or intended to change the behavior, response or workload of another person. Incentives seek to to get people to do something, do their best or even not do something.

Incentives are mostly of monetary andNon monetary Incentives, social insult monetary Incentive has money as incentive in all task given.

ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendo’s incremental borrowing rate is 8%, and Cleveland’s implicit interest rate of 8% is known to Abriendo. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.

Answers

Answer:

The correct answer is "2,40,000". The further explanation is given below.

Explanation:

The given fair value is:

= $240,000

The presentation in books of lessee will be:

⇒  [tex]Record \ of \ assets =PV \ of \ Lease \ Payment +Unguaranteed \ residual \ value[/tex]

⇒  [tex]Annuity \ value \ of \ 8 \ percent \5 \ year\times 48555+Anuity \ value \ of \ 5th \ year\times 45000[/tex]

On putting the values, we get

⇒  [tex]3.9927\times 48555+0.6806\times 45000[/tex]

⇒  [tex]193865.54+30627[/tex]

⇒  [tex]224492.54 \ i.e., 2,24,493[/tex] ($)

Presentation in books of Lessor , the fair value of assets will be

=  [tex]2,40,000[/tex] ($)

Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments. Its current value of operations, which is also its value of debt plus equity, is estimated to be $200 million. Higgs has $110 million face value, zero coupon debt that is due in 3 years. The risk-free rate is 5%, and the standard deviation of returns for similar companies is 60%. The owners of Higgs Bassoon view their equity investment as an option and would like to know the value of their investment.

Required:
Using the Black-Scholes Option Pricing Model, how much is the equity worth?

Answers

Answer:

123.63 million

Explanation:

From the given information:

The total value for the firm is $200 million

The face value of debt is $110 million

Maturity of debt = 3 years

Risk free rate = 5 %

Standard deviation of return = 60%

Using Black-Scholes Option Pricing Model, the equity worth is computed in an Excel file and the screenshot is show in the image attached below.

For each of the following incidents, determine whether the individuals will be motivated to behave as desired.
Frank Edwards is head basketball coach at a small regional state university, a campus of the state’s main university system. He has just had a visit with Walter Johnson, a local high school athlete who is clearly one of the state’s blue chip basketball prospects. Frank desperately needs a player of Walter’s potential to turn his mediocre team around, but he realizes that it won’t be easy to sign him. He is confident that he made it clear to Walter that there is a scholarship available for Walter if he wants it. He also knows that Walter needs a scholarship to be able to go to college. However, an article in the Sunday Sports section reports that two of the major state university coaches (larger schools upstate, with nationally known basketball programs) also intend to actively recruit Walter. Coach Edwards should take which of the following actions?
A. Send Walter a written and notarized offer of the scholarship.B. Write Walter's parents, stressing that the scholarship will cover all of his tuition, room and board, and book expenses.C. Write a letter to Walter stressing to him the value of a college education.D. Talk to Walter again, stressing the likelihood that he would make the starting five in his freshman year.E. Do nothing. Walter will probably sign with him anyway.

Answers

Answer:

C). Write a letter to Walter stressing to him the value of a college education.

Explanation:

The most ethical and moral action that Coach Edward should take in the given situation would be to 'write a letter to Walter stressing to him the value/significance of college education.' It would not only educate Walter regarding the crucial role that college education plays in defining the success and personality of an individual but also emphasize the benefits of joining the college team which would be vital to his overall career and give a direction to his skills. Thus, this would serve Coach Edwards' purpose ethically by making Walter understand the idea logically and convince him. Therefore, option C is the correct answer.

A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018.
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.
4. The CD matured on September 30, 2018.

Answers

Answer:

Feb. 1     DR Cash                                                 $400,000

                  CR Tax anticipation notes                                     $400,000

Dec 31   DR Expenditures - Interest                       $3,666.67

                    CR Accrued Interest Payable                               $3,666.67                  

Working

February to December = 11 months

Interest = 400,000 * 1.0% * 11/12 months = $3,666.67

April 1      DR Investments                                          $100,000

                     CR Cash                                                                  $100,000

Sept. 30   DR Cash                                                    $50,200

                      CR Investments                                                        $50,000

                            Interest Income                                                        $200  

Working

Interest Income = 50,000 * 0.8% * 6/12 months

= $200

Use demand and supply diagrams (with proper labels and arrows) to show the effect of
a) a reduction in price of DVD Players on market for DVDs.
b) reports that eating chocolate adds to your life expectancy (!!) on the market for chocolate candy bars.
c) an additional $1 a pack sales tax on cigarettes along with a ban on advertising cigarettes.
d) automation in fast food industry on market for unskilled fast food workers.
e) an increase in interest rate on the stock market.
f) flooding in the southeast on market for fruits and vegetables.

Answers

Answer:

Please check the attached images for the graphs

Explanation:

a.DVD players and DVDs are complements

Complement goods are goods that can be used together. If the price of one Dvd payers falls, the demand for DVDs would increase. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

b. As a result of the report, the demand for chocolate candy bars increases. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

c. As a result of the policies, the demand for cigarettes would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.

d. As a result of the automation, there would be less need for unskilled labour. As a result, the demand for unskilled labour would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.

e. increase in interest rate increases the demand for bonds. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase

f. as a result of the flooding, there would be a reduction in supply. The supply curve would shift leftward. Equilibrium price would rise and equilibrium quantity would fall

Task C has two immediate predecessors, Tasks A and B. Task C also has two immediate followers, Tasks D and E. Task A has an early finish time of 3 days, and Task B has an early finish time of 5 days. Task D has a late start time of 10 days and Task E has a late start time of 8 days. Task C is 2 days long. What is the early finish time of Task C

Answers

Answer:

7 days

Explanation:

Calculation for the early finish time of Task C

First step is to find the Early Start of task C

Using this formula

Early Start of task C = MAX (Early Finish of task A, Early Finish of task B)

Let plug in the formula

Early Start of task C= MAX(3,5)

Early Start of task C = 5

Now let calculate the Early Finish time of Task C

Using this formula

Earliest Finish = Earliest Start + Activity Duration

Let plug in the formula

Earliest Finish of task C = 5 + 2

Earliest Finish of task C = 7 days

Therefore the early finish time of Task C will be 7 days

The early finish time of task C is the sum of the early start time and the activity duration of the task. Hence, the early finish time of task C is 7 days.

Given the Parameters :

Activity time of task C = 2 days Early finish, Task A = 3 days Early finish, Task B = 5 days

The early finish time of task C :

Early start time possible + Activity time of task C

Maximum value of the finish time of the preceeding task :

Early start time of task C = maximum(3, 5)

Early start time of task C = 5 days

Early finish time of C = 5 days + Activity time

Early finish time of task C = 5 days + 2 days = 7 days

Therefore, the early finish time of task C is 7 days

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Fidelity Stereo Company has provided the following information regarding its activity-based costing system:Purchasing department costs are allocated based on purchase orders, and the predetermined overhead allocation rate is $77 per purchase order.Assembly department costs are allocated based on the number of parts used, and the predetermined overhead allocation rate is $5 per part.Packaging department costs are allocated based on the number of units produced, and the predetermined overhead allocation rate is $4 per unit produced.Each stereo produced has 50 parts, and the direct materials cost per unit is $70. There are no direct labor costs. Fidelity Stereo has an order for 1200 stereos, which will require 45 purchase orders in all. What is the total cost for the 1200 stereos?a. $392,265b. $303,465c. $388,800d. $307,950

Answers

Answer:

a. $392, 265

Explanation:

Given that:

i. Purchasing department, overhead allocation rate is $77 per purchase order.

ii. Assembly department, overhead allocation rate is $5 per part.

iii. Packaging department, overhead allocation rate is $4 per unit.

iv. Direct material cost is $70 per unit.

v. Each stereo has 50 parts.

Total parts required = 1200 x 50

                                 = 60000

vi. 45 purchase order was required for 1200 stereos.

Thus:

i. $77 x 45 = $3465

ii. $5 x 60000 = $300000

iii. $4 x 1200 = $4800

iv. $70 x 1200 = $84000

Therefore,

total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000

                                            = $392, 265

The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:_____.
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.

Answers

Answer:

A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.

Explanation:

Recognize the Asset - Office Equipment and Accounts Payable Accounts as these are increasing. De-recognize the Cash Account as this account is decreasing.

Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report.

October 31 (in millions) 2007 2006
Accounts receivable, net $13,420 $10,873

HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.

For the fiscal years ended October 31 (in millions)

2007 2006 2005
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period $220 $227 $286
Increase in allowance from acquisition 245 3 4
Addition of bad debts provision 32 37 17
Deductions, net of recoveries (29) (48) (76)
Balance, end of period $226 $220 $227

Required:
a. What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?
b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?
c. What amount of bad debts expense did HPQ report each year 2007 through 2006? What amount was actually written off?

Answers

Answer:

The answer is below

Explanation:

Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report. We have the following:

(a) What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?($ millions)2007, 2006

Gross accounts receivable for year 2007 = $13,646 for year 2006 = 11,093

(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?(Round your answers to two decimal places.)($ millions) 2007 2006 Percentage of uncollectible accounts to gross accounts receivable for year 2007 =  1.66% for year 2006 =1.98 %

(c)What amount of bad debts expense did HPQ report each year 2005 through 2007? What amount was actually written off? ($ millions)2007, 2006, 2005,

Bad debt expense for year 2007 = $32. Year 2006 = $37.   Year 2005 = $17

Amount actually written off for year 2007 = $29.  Year 2006 = $48 Year 2005 = $76

Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
Required: For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

Answers

Answer:

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

31-Dec

Dr Interest receivable $1,750

Cr Interest revenue $1,750

31-Dec

Dr Deferred Revenue $4,000

Cr Revenue or Service Revenue $4,000

Explanation:

Preparation of Journal entries

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

(To adjust 12 month depreciation)

31-Dec

Dr Interest receivable $1,750

($50,000 x 7% x 6/12)

Cr Interest revenue $1,750

(To adjust 6 month interest revenue accrued)

31-Dec

Dr Deferred Revenue $4,000

($16,000 x 3/12)

Cr Revenue or Service Revenue $4,000

(To record earned revenue for 3 months

The journal entries are as follows:

On Dec 31

Depreciation expense $7,000

              Accumulated Depreciation - Equipment $7,000

Interest receivable $1,750 ($50,000 ×  7% × 6 ÷ 12)

        Interest revenue $1,750

Deferred Revenue $4,000 ($16,000 × 3 ÷ 12)

          Revenue or Service Revenue $4,000

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Combination Fraction of Portfolio in Diversified Stocks Average Annual Return Standard Deviation of Portfolio Return (Risk)
(Percent) (Percent) (Percent)

A 0 2.00 0
B 25 4.50 5
C 50 7.00 10
D 75 9.50 15
E 100 12.00 20

If Rosa reduces her portfolio's exposure to risk by opting for a smaller share of stocks, he must also accept a average annual return. Suppose Rosa currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bonds; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 4.5% to 9.5%. In order to do so, she must do which of the following?

a. Sell some of her bonds and use the proceeds to purchase stocks
b. Sell some of her stocks and use the proceeds to purchase bonds
c. Place the entirety of her portfolio in bonds
d. Accept a lower average annual rate of return

Answers

Answer:

a. Sell some of her bonds and use the proceeds to purchase stocks.

Explanation:

Debt or bonds is less risky so it generates lower returns. Stock or equity comprises high risk so it offers high returns to its investors. If Rosa wants to increase her returns from 4.5% to 9.5% then he should sell some of its bonds and invest the proceeds into stocks. The lower returns on the bonds will be replaced by high returns on the stocks.

Canadians companies are free to charge whatever prices they wish. True or false

Answers

Answer:true

Explanation:

Laws governing sales are only enacted when the rights of an organization are infringed upon
True
False

Answers

False because I know give brainlessly because I so swag and cool

Answer:

This is true for odyssey-ware

Explanation:

For each of the situations​ listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated​ (competence, confidentiality,​ integrity, or​ credibility).

1. To reduce the company's tax bill, Jack uses total cost to value inventory instead of using product cost as required by law.
2. Since Emilie works in the accounting department, she is aware that profits are going to fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date.
3. Veronica pays a Mexican official a bribe of $50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.
4. There is a failure in the company's backup system after a system crash. Month-end reports will be delayed. Kayla, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since she does not want to be the bearer of bad news.

Answers

Answer:

1. To reduce the company's tax bill, Jack uses total cost to value inventory instead of using product cost as required by law.

Competence: accounting records must follows applicable laws, regulations and standards, you must IRA and GAAP rules when preparing financial statements and tax reports.

2. Since Emilie works in the accounting department, she is aware that profits are going to fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date.

Confidentiality: accounting records must b confidential unless you are authorized to disclose them, and you are not authorized to disclose the information to your aunt.

3. Veronica pays a Mexican official a bribe of $50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.

Integrity: you must abstain from performing illegal activities, and bribery is illegal.

4. There is a failure in the company's backup system after a system crash. Month-end reports will be delayed. Kayla, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since she does not want to be the bearer of bad news.

Credibility: you must report all relevant and important information regardless of whether that information will make you bad or not.

A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 4202 dollars. How much did he invest at each rate?

Answers

Answer:

Amount at 6% = $38,200Amount at 10% = $19,100

Explanation:

Assume x is the amount in the 10% account.

The formula to solve would be;

(2x * 6%) + x * 10% = 4,202

0.12x + 0.1x = 4,202

0.22x = 4,202

x = 4,202/0.22

x = $19,100

The amount he invested at 6% is therefore;

= 19,100 * 2

= $38,200

You are considering a project which will provide annual cash inflows of $4,921, $5,700, and $8,000 at the end of each year for the next three years, respectively. What is the present value of these cash flows, given a 9 percent discount rate?

Answers

Answer:

Total PV= $15,489.73

Explanation:

Giving the following information:

Cash flows:

1= $4,921

2= $5,700

3= $8,000

Interest rate= 9%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

PV1= = 4,921/1.09= 4,514.68

PV2= 5,700/1.09^2= 4,797.58

PV3= 8,000/1.09^3= 6,177.47

Total PV= $15,489.73

Zola Inc. paid a $10,000 legal fee to the attorney who resolved a dispute over Zola's title to investment land. Zola's auditors required the corporation to expense the payment for financial statement purposes. The tax law required Zola to capitalize the payment to the basis of the land. This difference in accounting treatment results in a:

Answers

Answer:

Deferred tax asset

Explanation:

A deferred tax asset results when a taxpayer (in this case Zola, Inc.) pays more taxes than what they were required to do during a certain period. It is considered an asset because the taxpayer will be allowed to use this overpayment of taxes to decrease future tax liabilities.

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account, and $2,660,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,590,000, $151,000 in the common stock account, and $2,960,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $94,500 and the company paid out $146,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $970,000, and the firm reduced its net working capital investment by $126,000.
What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answers

Answer: $589,500

Explanation:

The cash flow to the creditors in 2016 will be calculated as:

= $94,500 – ($1,590,000 - $1,405,000)

= $94,500 – $1,590,000 + $1,405,000

= -$90,500

For the shareholders, the cash flow in 2016 will be:

= $146,000 – [($151,000 + $2,960,000) – ($141,000 + $2,660,000)]

= -$164,000

Capital spending = $970,000

Cash flow due to the net working capital investment = -$126,000

OCF

= -$90,500 + (-$164,000) + $970,000 + (-$126,000)

= $589,500

During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following:
Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line)
Machine A $ 39,000 $ 3,000 6 years $ 24,000 (4 years)
Machine B 53,000 4,000 8 years 36,750 (6 years)
Machine C 76,900 5,200 17 years 50,612 (12 years)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $14,500 cash.
b. Machine B: Sold on December 31 for $10,725; received cash, $2,300, and a $8,425 interest-bearing (12 percent) note receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.
Required:
Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.

Answers

Answer:

Merkley Company

a. Journal Entries:

January 1:

Debit Disposal of Machines $39,000

Credit Machine A $39,000

To transfer machine A to the Disposal of Machines account.

Debit Accumulated Depreciation $24,000

Credit Disposal of Machines $24,000

To transfer the accumulated depreciation of machine A to the Disposal of Machines account.

Debit Cash Account $14,500

Credit Disposal of Machines $14,500

To record the proceeds from disposal of machine A.

Debit Loss on Disposal of Assets $500

Credit Disposal of Machines $500

To record loss incurred on disposal of machine A.

b. December 31:

Debit Disposal of Machines $53,000

Credit Machine B $53,000

To transfer machine B to the Disposal of Machines account.

Debit Accumulated Depreciation $36,750

Credit Disposal of Machines $36,750

To transfer the accumulated depreciation of machine B to the Disposal of Machines account.

Debit Depreciation Expense $6,125

Credit Disposal of Machines $6,125

To record the depreciation expense for the year.

Debit Cash Account $2,300

Debit Notes Receivable $8,425

Credit Disposal of Machines $10,725

To record the proceeds from disposal of machine B.

Debit Disposal of Machines $600

Credit Gain from Disposal of Machines $600

To record gain from the disposal of machine B.

c.  January 1:

Debit Disposal of Machines $76,900

Credit Machine C $76,900

To transfer machine C to the Disposal of Machines account.

Debit Accumulated Depreciation $50,612

Credit Disposal of Machines $50,612

To transfer the accumulated depreciation of machine C to the Disposal of Machines account.

Debit Loss on Disposal of Assets $26,288

Credit Disposal of Machines $26,288

To record loss incurred on disposal of machine C.

Explanation:

a) Data and Calculations:

Asset           Original   Residual  Estimated   Accumulated              Book

                    Cost         Value          Life         Depreciation            Balance

                                                                        Straight-line

Machine A  $ 39,000  $ 3,000     6 years    $ 24,000 (4 years)    $15,000

Machine B     53,000     4,000      8 years       36,750 (6 years)    $16,250

Machine C    76,900      5,200    17 years       50,612 (12 years)  $26,288

b) Machine B recorded a gain on disposal because it was sold on December 31 of the current year.  Thus the last year's depreciation expense must be provided.  This automatically turned the difference between net book value and disposal proceeds into a disposal gain.

The Pet Store experienced the following events for the Year 1 accounting period:________.
1. Acquired $60,000 cash from the issue of common stock.
2. Purchased $65,000 of inventory on account.
3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
4. Sold inventory on account that cost $38,000 for $71,000.
5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost.
6. Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150.
7. Collected $58,300 cash from accounts receivable.
8. Paid $59,200 cash on accounts payable.
9. Paid $2,600 for advertising expense.
1. Paid $3,100 cash for insurance expense.
Required:
a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction
b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for NA. investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The beginning balances have been recorded as an example.
Complete this question by entering your answers in the tabs below.
Required A Required B
Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.
Transaction Cost
1
2
3
4
5
6
7
8
9
10

Answers

Answer:

I used an excel spreadsheet since there is not enough room here

Explanation:

         

Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool Activity Rates
Labor-related $7.00 per direct labor-hour
Machine-related $3.00 per machine-hour
Machine setups $40.00 per setup
Production orders $160.00 per order
Shipments $120.00 per shipment
General factory $4.00 per direct labor-hour

Cost and activity data have been supplied for the following products:

J78 B52
Direct materials cost per unit $6.50 $31.00
Direct labor cost per unit $3.75 $6.00
Number of units produced per year 4,000 100
Total Expected Activity J78 B52 Direct labor-hours 1,000 40
Machine-hours 3,200 30
Machine setups 5 1
Production orders 5 1
Shipments 10 1

Required:
Compute the unit product cost of each product listed above.

Answers

First, The unitary production cost J78 is = $15.95

Second The unitary production costB52 is = $45.4

How to Compute the unit Product Cost?

Firstly, we need to allocate overhead to each product that is:

Then Allocated MOH is = Estimated manufacturing overhead rate × Actual amount of allocation base

The cost and activity data of J78:

The Labor-related is = 7.00×1,000= 7,000

Then Machine-related is = 3.00×3,200= 9,600

After that Machine setups is = 40.00×5= 200

Then Production orders is = 160.00×5= 800

Then Shipments is = 120.00×10= 1,200

The General factory is = 4.00×1,000= 4,000

Therefore, The Total overhead is = $22,800

Then the Unitary overhead is = 22,800/4,000= $5.7

The cost and activity data of B52:

The Labor-related is = 7.00×40= 280

Then Machine-related is = 3.00×30= 90

After that Machine setups is = 40.00×1= 40

Then Production orders is = 160.00×1= 160

Then Shipments is  = 120.00×1= 120

After that General factory is = 4.00×40= 160

Therefore The Total overhead is = $850

Then Unitary overhead is = 850/100= $8.5

Now, we calculate the unitary production cost is:

The unitary production cost J78= 6.5 + 3.75 + 5.7= $15.95

The unitary production cost B52= 31 + 6 + 8.5= $45.4

Find out more information about Unit Product Cost here:

https://brainly.com/question/2190896

What precaution should a food handler take when cleaning up vomit

Answers

Explanation:

The following are some precautions a food handler should take:

they should ensure that they are adequately protected by wearing hand gloves.ensure that they properly wash the area affected and the equipment used during the cleaning with detergent (eg bleach).the gloves worn during the cleaning operation should also be properly disinfected with detergents.

A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below.
Advertising and Promotion Expenses $ 263,700
Income Tax Expense 56,620
Interest Expense 44,020
Other Expenses 123,600
Other Selling & Administrative Expenses 352,000
Sales Revenue 1,871,300
Salaries and Wages Expense 726,000
Required:
1. Calculate the net income for the Green Thumb, Inc. for Year 3.
2. Prepare a statement of retained earnings for Green Thumb, Inc. for Year 3. Assume the company had retained earnings of $163,200 as of January 1, Year 3, and paid out $46,120 in dividends during Year 3.

Answers

Answer:

a.                               Green Thumb

                       Net Income for the year 3

Particulars                                      Amount

Sales revenue                                                     $1,871,300

Operating expenses

Advertising expense                    $263,700

Salaries and wages expense      $726,000

Other selling expenses                $352,000

Other expenses                            $123,600      $1,465,300

Earnings before interest and taxes                   $406,000

Interest expense                                                 $44,020    

Earnings before taxes                                         $361,980

Income tax expense                                            $56,620

Net Income                                                           $305,360

b.                         Green Thumb Inc.

                Statement of retained earnings

             For the year ended Dec 31, Year 3

Retained Earnings, Jan 1 year 3      $163,200

Add: Net Income                              $305,360

Less: Dividend paid                          $46,120

Retained Earnings, Dec 31 year 3  $422,440

Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:

Activity Activity Rate
Fabrication $34 per machine hour
Assembly $14 per direct labor hour
Setup $46 per setup
Inspecting $26 per inspection
Production scheduling $14 per production order
Purchasing $8 per purchase order

The activity-base usage quantities and units produced for each product were as follows:

Elliptical
Activity Base Machines Treadmills
Machine hours 663 415
Direct labor hours 180 78
Setups 21 9
Inspections 119 181
Production orders 16 9
Purchase orders 90 50
Units produced 268 134

Required:
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product.

Answers

Answer:

Results are below.

Explanation:

First, we need to allocate overhead to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Elliptical:

Fabrication= 34*663= 22,542

Assembly= 14*180= 2,520

Setup= 46*21= 966

Inspecting= 26*119= 3,094

Production scheduling= 14*16= 224

Purchasing= 8*90= 720

Total allocate cost= $30,066

Unitary cost= 30,066/268= $112.19

Treadmills:

Fabrication= 34*415= 14,110

Assembly= 14*78= 1,092

Setup= 46*9= 414

Inspecting= 26*181= 4,706

Production scheduling= 14*9= 126

Purchasing= 8*50= 400

Total allocate cost= $20,848

Unitary cost= 20,848/134= $155.58

Agreement and disagreement among economists Suppose that Yakov, an economist from a research institute in Texas, and Ana, an economist from a school of industrial relations, are arguing over health insurance. The following dialogue shows an excerpt from their debate:
Ana: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.
Yakov: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.
Ana: I disagree. I think government funding of health insurance is useful to ensure basic fairness. The disagreement between these economists is most likely due todifferences in values.
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
A. Immigrants receive more in government benefits than they contribute in taxes.
B. Having a single income tax rate would improve economic performance.
C. Rent ceilings reduce the quantity and quality of available housing.

Answers

Answer: C. Rent ceilings reduce the quantity and quality of available housing.

Explanation:

Economists for all their differences will most likely agree that Rent Ceilings reduce the quality and quantity of available housing.

This is because it lowers the incentive for landlords to improve their housing if they know that they cannot charge enough to benefit from this improvement.

Landlords will also build lower quality housing or not go into housing construction at all because the rent ceiling might mean that they are not making enough return to pay for the construction of the house.

Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following , identify which type of activity is described by each statement. (Operating Activity Investing Activity Financing Activity)

a. Yum Co. uses cash to repurchase 10% of its common stock.
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity.
c. D and W Co. sells its last season’s inventory to a discount store.
d. A company records a loss of $70,000 on the sale of its outdated inventory.

Answers

Answer:

a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)

b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)

c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)

d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)

Explanation:

Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:

- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.

- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.

- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt

Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: A. $50,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. B. Prepaid rent of $24,000, covering the period January 1, 2022, through December 31, 2023. C. Notes payable of $200,000. The notes are payable in annual installments of $20,000 each, with the first installment payable on March 1, 2022. D. Accrued interest payable of $12,000 related to the notes payable. E. Investment in equity securities of other corporations, $80,000. Cone intends to sell one-half of the securities in 2022.Required:Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.

Answers

Answer:

Cone Corporation

Assets and Liabilities Sections of the Classified Balance Sheet:

Current Assets:

B. Prepaid Rent $12,000

E. Equity Securities $40,000

Long-term Assets:

A. Restricted Cash $50,000

B. Prepaid Rent $12,000

E. Equity Securities $40,000

Current Liabilities:

C. Notes Payable $20,000

D. Interest Payable $12,000

Long-term Liabilities:

C. Notes Payable $180,000

Explanation:

a. The restricted cash should be treated as a long-term asset since the associated bonds mature in 2025.

b. Half of the Prepaid Rent should be treated as a current asset and the other half as a long-term asset to cover next year and next two years respectively.

c. $20,000 of the Notes Payable is treated as a current liability with the remaining as long-term liabilities.

d. The interest payable is treated as a current liability since it is likely to be paid next year.

e. Half of the investment in equity securities should be treated as a current asset and half as a long-term asset.

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