Answer:
4) when resources are scarce, people face tradeoffs
Explanation:
All resources are scarce, but some are more scarce than others. For example, the day of the richest or poorest person in the world last exactly the same, 24 hours. You cannot buy more time per day. Even the richest person in the world has a limited amount of money, he/she cannot own all the money in the world. Some countries are rich in natural resources, but do not have capital. This leads to the concept of opportunity costs, which are the benefits lost or extra costs associated with choosing one alternative action or investment over another one. If Ken buys the new pair of sneakers, his opportunity cost is the pair of designer pants.
Assume that the educational savings account will return a constant 9%. The parents deposit $2400 on their daughter's first birthday and plan to increase the size of their deposits by 7% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is closest to ________.
Answer:
the amount available is $160,463
Explanation:
The computation of the amount available for the daughter's college expenses on her 18th birthday is shown below:
= First deposit × ((1 + rate of interest)^number of years - (1 + growth rate)^number of years) ÷ (rate of interest - growth rate)
= $2,400 × ((1 + 0.09)^18 - (1 + 0.07)^18) ÷ (0.09 - 0.07)
= $160,463
hence, the amount available is $160,463
She began by asking around for suggestions and by reading through online reviews of different services such as Hulu Plus and Amazon Prime. After considering all her options, Elina decided to subscribe to Netflix for its wide selection of films and television programs, as well as for its popular original programming, which Netflix also made available for streaming. Little by little, Elina and her friends began spending less time at the local movie house where they'd go to watch older films for $6 a film, and more time in her dorm room where they could watch movies of all genres and time periods to their hearts' content. That, accidentally, turned out to be another huge cost-savings measure for Elina. It wasn't long before she recognized that she made the right decision. Elina became a Netflix convert and recommended to others to do the same.
Match the followings.
a. Tells friends how great Netflix is
b. Wants access to home entertainment
c. Compare Netflix, Amazon prime and Hulu plus
d. Provides credit card to Netflix
e. Asks a fried where he rents
1. Need recognition
2. Information Search
3. Alternative Evaluation
4. Purchase
5. Post-purchase
Answer :
a -- 5, b -- 1, c -- 3, d -- 4, e -- 2
Explanation :
In the context, it is given that Elina loves to watch movies and recently she subscribe Netflix to see movies and other program that are streaming on Netflix. She began to realize that she made a right decision and she save money in this way compared to when she spend money on the local theater.
From the context we can compare :
a. Tells friends how great Netflix is -- Post Purchase
b). Wants access to home entertainment -- Need recognition
c). Compare Netflix, Amazon prime and Hulu plus -- Alternative Evaluation
d). Provides credit card to Netflix -- Purchase
e). Asks a fried where he rents -- Information Search
Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . . b. Production supervisors' salaries. . . . . . . . . . . . . . c. Depreciation on forklifts in factory. . . . . . . . . . . . d. Machine lubricants. . . . . . . . . . . . . . . . . . . . . e. Factory janitors' wages. . . . . . . . . . . . . . . . . . . . . f. Assembly workers' wages. .
Answer:
Direct Material:
Airplane seats . . . . . $220
Total= $220
Direct labor:
Assembly workers' wages . . . . . . . . $600
Total= $600
Indirect labor:
Production supervisors' salaries . . . . . . . . . . . . . . $170
Factory janitors' wages . . . . . . . . . . . . . . . . . . . . . $60
Total = $230
MOH:
Machine lubricants . . . . . . $35
Depreciation on forklifts . . . . . . $110
Total = $145
Explanation:
The given manufacturing costs of an airplane have correctly been classified along with their totals as mentioned above. Direct materials are characterized as the materials that are directly used to manufacture the product while direct labor is defined as the people who are responsible for producing the unit of the product. Indirect labor are the workers who are not directly associated with the manufacturing of the product but they ensure effective running of day-to-day work. MOH is defined as the manufacturing overhead cost which is the total of all indirect costs responsible for the manufacturing of the product.
Janice Davis, a marketing representative for a U.S. firm, was looking forward to her assignment in Japan because she had visited the country on one occasion. However, her anticipation quickly turned to frustration. Because all store signs were in Japanese, she didn't know where to buy even a broom. Directions and instructions for using appliances were in Japanese. How could Janice have better prepared herself for the cultural shock she experienced
Answer:
Janice should have researched and studied the culture and living conditions of Japan before coming to the country. It is their culture to use the Japanese language for signs and instructions
Explanation:
Culture shock occurs when an individual moves to a cultural environment that is different from their own. This results in a disorientation from experiencing unfamiliar way of life.
If adequate preparation is not made before coming into the new environment it will most likely result in frustration as one finds it difficult to fit in.
In this instance Janice should have studied the culture most especially the language before coming into the country. This would have made it easier for her to adapt to their way of life.
9. Galloway, Inc. has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $2 per share for each of the next 5 years, and then never pay another dividend. How much are you willing to pay per share today to buy this stock if you require a 15 percent return
Answer:
P0 = $41.7196815 rounded off to $41.72
Explanation:
To calculate the price of the stock today, we will use the discounted cashflow model. The formula for price under this model will be the present value of the expected future cash flows. The formula is as follows,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n
Where,
D1, D2,...,Dn are the dividends in year 1, years 2 and so on to year nr is the required rate of returnP0 = (7+2) / (1+0.15) + (7+2+2) / (1+0.15)^2 + (7+2+2+2) / (1+0.15)^3 +
(7+2+2+2+2) / (1+0.15)^4 + (7+2+2+2+2+2) / (1+0.15)^5
P0 = $41.7196815 rounded off to $41.72
A motive is always required for the suspect to be criminally liable
Atlantic Corporation reported the following amounts at the end of the first year of operations: Common stock $ 270,000 Sales revenue $ 940,000 Total assets $ 740,000 Dividends declared $ 65,000 Total liabilities $ 410,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year
Answer:
See below
Explanation:
According to the above information, Retained earning is
Sales revenue $940,000 - dividend declared $65,000 = $875,000
Retained earning is $857,000
The normal balance for cash in bank is recorded
Answer: go to this link
Debits and Credits - Normal Balances, Permanent ...
Explanation:
The courts ruled that the pay disparity between the sexes at Jaxon Corp. was illegal and ordered the company to remedy it. Jaxon Corp. cannot lower the wages of the higher-paid group in order to comply with the law.
True Or False
Answer:
True
Explanation:
can i pls have brainlyest pls i need it
The statement "The courts ruled that the pay disparity between the sexes at Jaxon Corp. was illegal and ordered the company to remedy it. Jaxon Corp. cannot lower the wages of the higher-paid group in order to comply with the law" is true.
What is disparity?The disparity can be defined as a lack of equality or likeness, particularly in an unfair way: the widening discrepancy between the affluent and poor.
Inequalities in other parts of society, such as the legal system, education, academe, commercial institutions, and politics, are referred to as social disparities. Most of the time, the social discrepancies listed above are the result of other disparities, such as economic disparity, gender disparity, or racial disparity.
The courts determined that Jaxon Corp.'s wage inequality between the sexes was unconstitutional and ordered the corporation to correct it. To comply with the legislation, Jaxon Corp. cannot reduce the compensation of the higher-paid group. Therefore, the above statement is true.
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Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fifth year (that is, you should receive a total of five coupon payments). At the time you receive your fifth payment, you will also receive the bond's face value of $5,000. Suppose the interest rate for a riskless bond is 7%. The most you would be willing to pay for this bond is $ . Give your answer to two decimals.
Answer:
$3,667.44
Explanation:
The amount you would be willing to pay today can be determined by finding the present value of the cash flows
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 4 = $25
Cash flow in year 5 = $25 + $5000
I = 7%
Present value = $3,667.44
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
Find the present values of the following cash flow streams. The appropriate interest rate is 10%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course.
Year    Cash Stream A Cash Stream B
1 $100 $300
2 400 400
3 400 400
4 400 400
5 300 100
   Â
Required:
What is the value of each cash flow stream at a 0 percent interest rate?
Answer:
a. The present value of Cash flow stream A at 10% interest rate is $1,181.50; while the present value of Cash flow streams B at 10% interest rate is $1,239.13.
b. Present value of Cash flow streams A and B at 0% interest rate are both equal to $1,600.
Explanation:
a. Calculations of the present values of Cash Flow Stream A and B at 10% interest rate
The present value (PV) for a particular year can be calculated using the following formula:
PV = FV / (1 + r)^n
Where:
PV = present value of a particular year
FV = Future value or cash stream of a particular year
r = interest rate = 10%
n = The particular year in focus
The present value of cash flow streams at a particular interest rate is the sum of the present values of Cash Stream for all years, and this can be calculated as follows:
Present value of Cash flow stream A at 10% interest rate = (100 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (300 / (1 + 10%)^5) = $1,181.50
Present value of Cash flow streams B at 10% interest rate = (300 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (100 / (1 + 10%)^5) = $1,239.13
b. Calculations of the present values of Cash Flow Stream A and B at 0% interest rate
The present value of cash flow streams at a 0% is simply the sum of Cash Flow Stream for all years, and this can be calculated as follows:
Present value of Cash flow stream A at 0% interest rate = $100 + $400 + $400 + $400 + $300 = $1,600
Present value of Cash flow streams B at 0% interest rate = $300 + $400 + $400 + $400 + $100 = $1,600
Jayne Corporation has 10,000 shares of $15 par value common stock outstanding when it announces a 3-for-1 split. Before the split, the stock had a market price of $120 per share. After the split, how many shares of stock will be outstanding, and what will be the approximate market price per share
Answer:
A. 30,000shares
B. $40
Explanation:
Calculation for how many shares of stock will be outstanding and what will be the approximate market price per share
A. Calculation for how many shares of stock will be outstanding
Outstanding stock = 10,000 shares × 3
Outstanding stock = 30,000shares
Therefore how many shares of stock will be outstanding is 30,000shares
B.Calculation for what will be the approximate market price per share
Market price per share= ($120 ÷ 3)
Market price per share=_40
Therefore what will be the approximate market price per share is $40
Market intelligence research defines the____ and_____ of a market.
A.size and location
B.size and scope
C.location and scope
D.location and area
help
Answer:
dja-xizd-mku G meet code
Walker Manufacturing Company reported the following materials data for the month ending June 30:
Materials purchased $776,400
Materials inventory, June 1 219,000
Materials inventory, June 30 174,800
Determine the cost of direct materials used in production by Walker during the month ended June 30.
Answer:
the cost of direct material used is $820,600
Explanation:
The computation of the cost of direct material used is shown below:
= Opening inventory + material purchased - ending inventory
= $219,000 + $776,400 - $174,800
= $820,600
Hence, the cost of direct material used is $820,600
It could come by applying the above formula
How would an economy with low unemployment be affected by an increase in individual households incomes?
Answer:
Because not many members of a household may bring in enough money to sustain them all.
Explanation:
Reading the newspaper this morning, you found an article that mentions a woman named Nada who used to live down the street from you. Nada was recently hired by the First State Bank to assist in the evaluation and forecasting of future financial and economic conditions in the communities served by the bank. In which area of finance does Nada work
Answer:
the options are missing:
Financial services
Financial markets and institutions
Managerial finance
Investments
the answer is Financial services.
Explanation:
Financial markets and institutions deals with stock and bond markets, it doesn't include evaluation of local markets.
Managerial finance deals with financial data analysis, and has nothing to do with Nada.
Investments generally deals with large clients, so neighborhood or community analysis doesn't fit very well either
Financial services includes serving smaller clients, e.g. opening checking accounts, mortgages, etc.
Jack (69) and Kendra (67) are married and will file a joint return. During the year, Jack received $9,000 in social security benefits, and Kendra received $28,000 in benefits. In addition, the couple earned $2,000 in interest income, and Jack, a retired military officer, received pension benefits totaling $73,000. How much, if any, of the couple's social security benefits are taxable
Answer:
- We assume the Tax year to be 2019
- Jack and Kendra are classified as Married Filling Jointly - 2019. If any of the clients have only Social Security benefits without any other taxable income, then, there is no need for such clients to file a tax return.
Here, Jack and Kendra are retired couples and has no other source of income except the Social Security benefit (and the Military pension is not taxable). Also, the interest income is very less than the Standard deduction itself which is $27,000. So, none of the couples social security benefit is taxable for the tax year 2019.
Answer:
their taxable amount is 30,000
As CEO of ​, knows it is important to control costs and to respond quickly to changes in the highly competitive​ boat-building industry. When Consulting proposes that invest in an ERP​ system, she forms a team to evaluate the​ proposal: the plant​ engineer, the plant​ foreman, the systems​ specialist, the human resources​ director, the marketing​ director, and the management accountant. A month​ later, management accountant reports that the team and estimate that if implements the ERP​ system, it will incur the following​ costs:
a. $435,000 in software costs
b. $95,000 to customize the ERP software and load Aqua Marine's data into the new ERP system
c. $105,000 for employee training
The team estimates that the ERP system should provide several benefits:
a. More efficient order processing should lead to savings of $105,000.
b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $125,000.
c. Integrating purchasing, production, marketing, and distribution into a single system will allow Aqua Marine to reduce inventories, saving $225,000.
d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $155,000.
Requirements
a. If the ERP installation succeeds, what is the dollar amount of the benefits?
b. Should Aqua Marine install the ERP system? Why or why not? Show your calculations.
c. Why did Easton create a team to evaluate Rose's proposal? Consider each piece of cost-benefit information that management accountant Cole reported. Which person on the team is most likely to have contributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?)
Answer:
a.) Total benefit if the ERP installation succeeds = $610,000
b.) They should not install the ERP system.
c.) For Estimating software costs - Systems specialist
For Estimating cost of loading data into the new ERP system - Management accountant , Systems specialist
For Customize the ERP software - Management accountant , Systems specialist
For Estimating customization costs - All team members
For Estimating training costs - Human resource director
For Savings from more efficient order processing - Systems specialist , Management accountant
For Savings from streamlining the manufacturing process - Plant engineer , Plant foreman
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimating benefits and costs - All team members
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimate benefits and costs - All team members
Explanation:
a.)
If the ERP installation succeeds , the dollar amount of the benefit is as follows :
From more efficient order processing savings = $105,000
From streamlining the manufacturing process savings = $125,000
From reduce inventories savings = $225,000
From increased sales profit = $155,000
⇒Total benefit = $ 105,000 + 125,000 + 225,000 + 155,000
= $610,000
⇒Total benefit if the ERP installation succeeds = $610,000
b.)
Firstly check the Costs for installation of ERP:
Software cost = $435,000
Customizing ERP and loading data cost = $95,000
Employee training cost = $105,000
⇒Total cost = $ 435,000 + 95,000 + 105,000
= $635,000
⇒Total cost = $635,000
Now,
As we have
Total Benefit in installation of ERP = $610,000
Total cost in installation of ERP = $635,000
⇒Net benefit = $610,000 - $635,000 = -$ (25,000)
∴ we get
If Aqua Marine install the ERP system , them they face loss.
So, They should not install the ERP system.
c.)
For Estimating software costs - Systems specialist
For Estimating cost of loading data into the new ERP system - Management accountant , Systems specialist
For Customize the ERP software - Management accountant , Systems specialist
For Estimating customization costs - All team members
For Estimating training costs - Human resource director
For Savings from more efficient order processing - Systems specialist , Management accountant
For Savings from streamlining the manufacturing process - Plant engineer , Plant foreman
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimating benefits and costs - All team members
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimate benefits and costs - All team members
9. Assume that Cane expects to produce and sell 87,000 Alphas during the current year. A supplier has offered to manufacture and deliver 87,000 Alphas to Cane for a price of $108 per unit. What is the financial advantage (disadvantage) of buying 87,000 units from the supplier instead of making those units?
Answer: Financial disadvantage of -$863,000
Explanation:
If they made the 87 thousand units themselves, they would incur a cost of:
= 87,000 * (Direct labor + Direct materials + Variable manufacturing overhead) + Traceable fixed manufacturing overhead
= 87,000 * (23 + 24 + 22) + (23 * 110,000)
= 87,000 * 69 + 2,530,000
= $8,533,000
Traceable fixed costs are based on the total capacity of 110,000 units being produced and so will not change.
If they buy from the supplier, the cost would be:
= 108 * 87,000
= $9,396,000
Financial advantage (disadvantage) = 8,533,000 - 9,396,000
= -$863,000
calculate the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit
Answer:
500 units
Explanation:
14x=7000. The breakeven point is where you have to make just as much as what you are spending. So your total would be 7000 and since it's 14 for each unit you're just looking for x and make it into an equation. 7000/14= 500 units
The break even number of units is 500
Breakeven point is where neither profit nor loss is incurred by a firm. It is where you have to make just as much as what you are spending.
Break even point (BEP) is computed as ;
= Fixed cost / Contribution margin
= $7,000 / $14
= 500 units.
Therefore, the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit is 500 units
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Pharoah Company borrowed $1470000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note required annual payments of $382842 and carried an annual interest rate of 9.5%. What is the amount of expense Pharaoh must recognize on its 2020 income statement
Answer:
$116,546.76
Explanation:
Loan amount=$1470000
interest expense in 2019=$1470000*9.5%=$139,650
annual repayment=$382,842
Balance of the loan as the end of 2019=loan amount-annual repayment+interest expense
Balance of the loan as the end of 2019=$1470000-$382,842+$139,650
balance of the loan as of the end of 2019=$1,226,808
2020 interest expense=balance as the end of 2019*interest rate
2020 interest expense=$1,226,808 *9.5%
2020 interest expense=$116,546.76
Perit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project AProject BCost of equipment required$210,000$0Working capital investment required$0$210,000Annual cash inflows$30,000$52,000Salvage value of equipment in six years$9,100$0Life of the project 6 years 6 years
Answer:
npv = $92,531.34
NPV = -$13,206.90
Project A should be chosen because it has a higher NPV
Explanation:
Here is the full question :
Perit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $210,000 $0 Working capital investment required $0 $210,000 Annual cash inflows $30,000 $52,000 Salvage value of equipment in six years $9,100 $0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 15%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: a. Calculate net present value for each project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).) b. Which investment alternative (if either) would you recommend that the company accept? Project B Project A
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Project A
Cash flow in year 0 = $-210,000
Cash flow each year from year 1 to 5 = $30,000
Cash flow in year 6 = $30,000 + $9100 = $39,100
I = 15%
npv = $92,531.34
Project B
Cash flow in year 0 = $-210,000
Cash flow each year from year 1 to 6 = $52,000
I = 15%
NPV = -$13,206.90
Project A should be chosen because it has a higher NPV
Which categories of goods used by ordinary people are most affected by scarcity? Use examples from two of these categories and explain how the scarcity of these goods might arise and how this scarcity would affect most people.
Answer:
nondurable and consumer goods
Explanation:
Nondurable goods are affected by scarcity because their time life is limited. For example, if the capital goods required for its transportation or conservation of ice cream broke down, the product would ruin very easily.
Consumer goods are generally mass consumed. For example clothes are consumed by most of us during the year, but most of them are imported nowadays. Any trade barrier that delayed their supply would cause a rapid shortage.
including scholarships and financial aid Rachel has 39,000 to spend on college if the total cost of her college education is_____, she will have enough resources to pay
a 36,000
b 42,000
c 48,000
d 45,000
Answer:
A. 36,000
Explanation:
If the college education cost is less than your financial aid limit then it can pay for it.
Answer:36,000
Explanation:because it say it
Manufacturing activities consist of materials, production, and sales activities. The materials activity consists of the purchase and issuance of materials to production. The production activity consists of converting materials into finished goods. At this stage in the process, the materials, labor, and overhead costs have been incurred and the schedule of cost of goods manufactured is prepared. The sales activity consists of selling some or all of finished goods available for sale. At this stage, the cost of goods sold is determined.
From the list below, select the items that are classified as a materials activity.
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
d. Work in process beginning inventory
e. Goods manufactured
f. Direct labor used
g. Factor overhead used
Answer:
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
Explanation:
Note: The materials activity consists of the purchase and issuance of materials to production
Thus, the items that are classified as a materials activity are :Raw materials used, Raw materials beginning inventory and Raw materials purchases
Listed below are three items. Required: Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These: Revenue Expense Other Changes to Stockholders' Equity None of These Deferred Revenue Supplies Expense Issuance of Stock
Answer:
Classification of items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
1. Deferred Revenue = Revenue
2. Supplies Expense = Expense
3. Issuance of Stock = Changes to Stockholders' Equity
Explanation:
Revenue represents the gross income that an entity receives from the sale of goods and services to customers. Revenue is therefore classified as either Sales Revenue or Service Revenue. It is an important item in the computation of the net income of the entity at the end of a financial period.
Expense represents the gross costs incurred by an entity for the sale of goods and services to its customers. It is usually deducted from the Revenue to obtain the net income.
Changes to Stockholders' Equity occur from revenues and expenses. They also occur from other business transactions like the issuance of stock to stockholders.
A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000, with payment received in advance. The $6,000 cash receipt was initially recorded as Unearned Revenue. The required adjusting entry includes a $4,000 debit to Unearned Revenue.
a. True
b. False
Answer:
a. True
Explanation:
Based on the information given the required adjusting journal entry will includes a $4,000 DEBIT TO UNEARNED REVENUE reason been that we were told that the company carried out 20 days of work out of 30-day contract before the end of the year which means that the company has earned an UNEARNED REVENUE by the end of the year of the amount of $4,000 calculated as ($6,000 * 20 days /30 days) which is why the adjusting Journal entry would includes a $4,000 DEBIT TO UNEARNED REVENUE.
Consider the following data from the financial statements of Stevenson Company, which has a tax rate of 30%: Year 2 Year 1 Sales $ 21,000,000 $ 19,500,000 Cost of goods sold 7,413,000 6,630,000 Net income 1,890,000 1,560,000 Interest expenses 164,500 144,500 Income taxes 220,286 196,286 Current assets 2,250,000 2,115,000 Total assets 5,050,000 4,760,000 Total liabilities 760,000 750,000 Total stockholders' equity 4,290,000 4,010,000 Knowledge Check 01 Refer to the information above. What was the gross margin percentage for Year 2
Answer:
The gross margin percentage for Year 2 was 64.70%.
Explanation:
The gross margin percentage for Year 2 can be calculated using the gross margin percentage formula as follows:
Gross margin percentage for Year 2 = (Gross profit in Year 2 / Sales in Year 2) * 100 ................. (1)
Where:
Gross profit in Year 2 = Sales in Year 2 - Cost of goods sold in Year 2 = $21,000,000 - $7,413,000 = $13,587,000
Sales in Year 2 = $21,000,000
Substituting the values into equation (1), we have:
Gross margin percentage for Year 2 = ($13,587,000 / $21,000,000) * 100 = 0.647 * 100 = 64.70%
Therefore, the gross margin percentage for Year 2 was 64.70%.
Sheridan Company purchased land as a factory site for $1350000. Sheridan paid $114000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5060 were paid for title investigation and making the purchase. Architect's fees were $47000. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15060. The contractor was paid $4500000. An assessment made by the city for pavement was $9800. Interest costs during construction were $257000.
The cost of the land that should be recorded by Wilson Co. is:______
a. $989,880
b. $980,480
c. $996,280
d. $986,880
The cost of the building should be recorded by Wilson Co. is:_______
a. 2,804,840
b. 2,813,200
c. 2,803,800
d. 3,014,240
Answer:
a
a
Explanation:
Bettina Amman is a sales consultant. She travels all over the country selling her company’s products. Her total monthly expenses for June, July, and August were $4,356.01, $9,011.20, and $8,780.00. What was her average monthly expenditure?
a
$7,382.40
b
$22,147.21
c
$8,090.25
d
$6,565.00
Answer:
a. $7,382.40
Explanation:
With regards to the above,
Bettina Amman 's average monthly expenditure calculation is shown below;
= Total monthly expenses / Number of months
= $4,356.01 + $9,011.20 + $8,780 / 3
= $7,382.40
Therefore, Bettina Amman's average monthly expenditure is $7,382.40