Answer:
a. What is the initial investment in the product?
$55,400b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 30%, what are the project cash flows in each year?
NCF₁ = $25,050NCF₂ = $15,250NCF₃ = $11,750NCF₄ = $8,250c. If the opportunity cost of capital is 12%, what is the project's NPV?
-$7,270.28d. What is project IRR?
4.27%Explanation:
year cash flows costs working capital
0 -$50,000 -$5,400
1 $54,000 -$27,000 $3,000 (+$2,400)
2 $30,000 -$15,000 $2,000 ($1,000)
3 $20,000 -$10,000 $1,000 (+$1,000)
4 $10,000 -$5,000 $0 (+$1,000)
net cash flow year 1 = [($54,000 - $27,000 - $12,500) x 0.7] + $12,500 + $2,400 = $25,050
net cash flow year 2 = [($30,000 - $15,000 - $12,500) x 0.7] + $12,500 + $1,000 = $15,250
net cash flow year 3 = [($20,000 - $10,000 - $12,500) x 0.7] + $12,500 + $1,000 = $11,750
net cash flow year 4 = [($10,000 - $5,000 - $12,500) x 0.7] + $12,500 + $1,000 = $8,250
I calculated the NPV and IRR using a financial calculator
Which of the following is an advantage of having a single set of accounting standards used worldwide?a. Reduced accounting costs for multinational corporationsb. Increased power of the FASBc. Reduced number of multinational corporations on the NYSEd. Increased diversity of accounting methods used by multinational corporations
Answer: Reduced accounting costs for multinational corporations.
Explanation:
An accounting standards are common standards, procedures and set of principles, that define financial accounting policies basis. Accounting standards also help in improving transparency of financial reporting.
An advantage of having a single set of accounting standards used worldwide is reduced accounting costs for multinational corporations.
Which amount best reflects operating income? Enter your answer in millions without commas or dollar signs.
Answer:
4673 million
Explanation:
The operating income is the income that is arrived after deducting all the operating expenses from the sales revenue before deducting the payment of interest and taxes. It is also called as Earning before interest and taxes (EBIT)
So based on the attached figure, as it can be seen that the operating income that should be recorded for 4673 millions i.e. equivalent to the Earning before interest and taxes
Selected transactions for Sophie's Dog Care are as follows during the month of March:March 1: Paid monthly rent of $1,270.3: Performed services for $150 on account.5: Performed services for cash of $80.8: Purchased equipment for $635. The company paid cash of $85 and the balance was on account.12: Received cash from customers billed on March 3.14: Paid wages to employees of $555.22: Paid utilities of $76.24: Borrowed $1,590 from Grafton State Bank by signing a note.27: Paid $230 to repair service for plumbing repairs.28: Paid balance amount owed from equipment purchase on March 8.30: Paid $1,910 for six months of insurance.Journalize the transactions.
Answer:
See answers and explanation below.
Explanation:
The journal entries will look as follows:
Date Account Title Dr ($) Cr ($)
March 1 Rent expenses 1,270
Cash 1,270
(To record payment of monthly rent.)
March 3 Accounts receivable 150
Service revenue 150
(To record services performed on account.)
March 5 Cash 80
Service revenue 80
(To record services performed for cash.)
March 8 Equipment 635
Cash 85
Acct payable - Equip. (w.1) 550
(To record purchase of equipment.)
March 12 Cash 150
Accounts receivable 150
(To record cash from customers billed on March 3.)
March 14 Wages expenses 555
Cash 555
(To record payment of monthly rent.)
March 22 Utilities expenses 76
Cash 76
(To record payment for utilities.)
March 24 Cash 1,590
Note payable 1,590
(To record borrowing from Grafton State Bank.)
March 27 Plumbing repair exp. 230
Cash 230
(To record payment for Plumbing repair.)
March 27 Acct payable - Equip. (w.1) 550
Cash 550
(To record balance paid for equipt purchased on March 8.)
March 30 Insurance expenses (w.2) 318.33
Insurance prepaid (w.3) 1,591.67
Cash 1,910
(To record payment for six months insurance.)
Workings:
w.1: Account payable - Equipment = Equipment cost - Cash paid = $635 - $85 = $550
w.2: Insurance expenses for March = Cash paid / 6 months = $1,910 / 6 = $318.33
w.3: Insurance prepaid = Cash paid - Insurance expenses for March = $1,910 - $318.33 = $1,591.67
Date Account Title Dr ($) Cr ($)
March 1 Rent expenses 1,270
Cash 1,270
(To record payment of monthly rent.)
March 3 Accounts receivable 150
Service revenue 150
(To record services performed on account.)
March 5 Cash 80
Service revenue 80
(To record services performed for cash.)
March 8 Equipment 635
Cash 85
Acct payable - Equip. (w.1) 550
(To record purchase of equipment.)
March 12 Cash 150
Accounts receivable 150
(To record cash from customers billed on March 3.)
March 14 Wages expenses 555
Cash 555
(To record payment of monthly rent.)
March 22 Utilities expenses 76
Cash 76
(To record payment for utilities.)
March 24 Cash 1,590
Note payable 1,590
(To record borrowing from Grafton State Bank.)
March 27 Plumbing repair exp. 230
Cash 230
(To record payment for Plumbing repair.)
March 27 Acct payable - Equip. (w.1) 550
Cash 550
(To record balance paid for equipt purchased on March 8.)
March 30 Insurance expenses (w.2) 318.33
Insurance prepaid (w.3) 1,591.67
Cash 1,910
(To record payment for six months insurance.)
Workings:
1
Account payable - Equipment = Equipment cost - Cash paid
= $635 - $85 = $550
2.
Insurance expenses for March
= Cash paid ÷ 6 months
= $1,910 ÷ 6
= $318.33
3: Insurance prepaid
= Cash paid - Insurance expenses for March
= $1,910 - $318.33
= $1,591.67
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The objectives of cybersecurity are to accomplish each of the following except:_______ a. Make data and documents available and accessible 24/7 while simultaneously restricting, access. b. Promote secure and legal sharing of information among authorized persons and partners. c. Ensure compliance with supply chain business partners. d. Detect, diagnose, and respond to incidents and attacks in real time.
Answer:
C
Explanation:
Cybersecurity is the protection of internet-connected systems such as hardware, software and data from cyber-threats. It is used to prevent unauthorized access to data.
When financial services companies undertake layoffs, the most valuable employees, whom the companies want to retain, often leave the company voluntarily for new jobs not long after the layoffs. ITEL Financial Services, however, has not lost any of its most valuable employees despite multiple layoffs in the past decade. ITELcredits its success in keeping valuable employees to its high tolerance for risk when employees make investment decisions.
Which of the following, if true, most strongly supports ITEL’s reasoning as to why the company retains its most valuable employees?
(A) People in the financial services industry are often motivated to change jobs by a significant salary increase.
(B) The way in which layoffs are handled can have a significant upward or downward impact on the morale and company loyalty of the employees who remain.
(C) Layoffs often occur during industry downturns, and it is generally much more difficult to find a new job when the industry is struggling.
(D) It is difficult to develop an objective method or definition for determining who should be considered a very valuable employee.
(E) A risk-intolerant environment impedes the entrepreneurial drive that financial services industry employees feel is a requirement to be successful
Answer:
(E) A risk-intolerant environment impedes the entrepreneurial drive that financial services industry employees feel is a requirement to be successful
Explanation:
Option E describes the justification of why ITEL most valuable employees have decided to remained to continue with a particular firm considering the situation of an economic downturn.
Thus, given that, the ITEL satisfies this justification or standards which implies maintaining a high tolerance for risks, hence the correct answer is option E, as it helps us to reinforce or bolster ITEL's understanding.
Therefore option E is the correct answer.
What jobs would require a point count sample on soil particles?
Answer:
The soil particles sank in the water as it is heavier. It is different from the soil and sand as the lighter particles of the sand are suspended. Soil in the soil bottle looks grainy.
Explanation:
The soil in the soil bottle is just particles of soil whereas that in the soil and sand bottle is a mixture of the soil and sand. The particles at the bottom are the particles with the largest grain size and the heaviest among the soil and sand particles.
Explanation:
Tried and True’s accountant suggests that monthly rent and hourly wage rate also be factored into the productivity calculations. Annandale pays the highest average wage at $10 an hour. Blacksburg pays $7.25 an hour, Charlottesville $8, and Danville $7.50. The cost to rent store space is $2800 a month in Annandale, $1200 a month in Blacksburg, $2000 a month in Charlottesville, and $800 a month in Danville.
a. Which store is most productive?
b. Tried and True is not sure it can keep all four stores open. Based on multifactor productivity, which store would you close? What other factors should be considered?
Answer:
a. Blacksburg
b. Blacksburg
Explanation:
a. Productivity is measured by how much output is derived per input.
= Output/Input
= Sales Volume/Labor Hours
Annandele = 40,000/250
= $160 per hour
Blacksburg = 12,000/60
= $200 per hour
Charlottesville = 60,000/500
= $120
Danville = 25,000/250
= $100
Blacksburg is most productive at $200 per labor hour.
b. Multifactor productivity would incorporate the other costs such as labor rate and rent.
= Sales volume / ( Rent + Labor cost)
Annandale = 4,0000/ (2,800 + 250 * 10)
= $7.5
Blacksburg = 12,000 / (1,200 + 60 * 7.25)
= $7
Charlottesville = 60,000/ ( 2,000 + 500 * 8)
= $10
Danville = 25,000 / ( 800 + 200 * 7.50)
= $10.86
Blacksberg is least productive using Multifactor so should be closed down.
Classify each cost as (a) either variable or fixed, and (b) either direct or indirect by selecting the appropriate dropdowns. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time.Cost Variable or Fixed Direct or Indirect 1. Maintenance on airplanes 2. Beverages served on planes 3. Insurance premium on airplanes 4. Regional vice president salary 5. Airport landing fee (per flight) 6. Fuel used in planes 7. Luggage handler wages 8. Depreciation (straight-line) on ground equipment
Answer:
1) Variable and direct cost
2) Variable and indirect cost
3) Variable and direct cost
4) Fixed and direct cost
5) Variable and direct cost
6) Variable and direct cost
7) Fixed and direct cost
8) Variable and direct cost
Explanation:
On the one hand, the costs known as variable are the ones whose amount changes with the variation of the production and therefore that this costs never the same because it will depend directly on the production. Meanwhile, the fixed costs are the opposite, they do not depend on the production and will always be the same amount, no matter how much the production increases or decreases.
On the other hand, the direct costs are the ones that are directly related to the cost object that is being analized and therefore that this costs are absolutely necessary to pay in order to keep the production of the good. Meanwhile, the indirect costs are the ones that can not be stricly related to the cost object and therefore that sometimes it is not clear how much of them are needed to be attributed to the product.
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $650 $680 Temporary investments 1,500 1,550 Accounts receivable 700 770 Inventory 1,250 1,400 Accounts payable 2,375 2,000 a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio improving or declining?
Squirrel tree services reports the following amounts on december 31, 2021.Assets Liabilities and Stockholders’ EquityCash $9,500 Accounts payable $15,100Supplies 3,600 Salaries payable 5,300Prepaid insurance 5,300 Notes payable 38,000Building 90,000 Common stock 40,000 Retained earnings 10,000In addition, the company reported the following cash flows.Cash Inflows Cash OutflowsCustomers $96,000 Employee salaries $40,000Borrow from the bank (note) 38,000 Supplies 22,000Sale of investments 35,800 Dividends 15,500 Purchase building 98,000Required:
1. Prepare a balance sheet.
2. Prepare a statement of cash flows.
Answer and Explanation:
1. The preparation of the balance sheet is presented below:
Squirrel tree services
Balance sheet
For the year ended December, 31, 2021
Liabilities Amount Assets Amount
and stockholder equity
Liabilities
Account payable $15,100 Cash $9,500
Salaries payable $5,300 Supplies $3,600
Note payable $38,000 Prepaid insurance $5,300
Total liabilities $58,400 Building $90,000
Equity
Common stock $40,000
Retained earnings $10,000
Total equity $50,000
Total liabilities & equity $108,400 Total assets $108,400
2. The preparation of the cash flow statement is presented below:
Squirrel tree services
Cash flow statement
For the year ended December, 31, 2021
Particulars Amount ($) Amount ($)
Cash flow from operating activities-
Cash inflows customers 96,000
Cash outflows salaries (40,000)
Cash outflows supplies (22,000)
Net Cash flow from operating activities (A) 34,000
Cash flow from investing activities-
Sale of investments 35,800
Purchase of building (98,000)
Net Cash flow from investing activities (B) (62,200)
Cash flow from financing activities
Borrowed from bank 38,000
Dividends (15,500)
Net Cash flow from financing activities (C) 22,500
Net increase in cash (A+B+C) (5,700)
Add: Cash at beginning of year 15,200
Cash at end of year 9,500
If consumers start to believe they need a product, what is likely to happen?
A. The demand becomes less elastic.
В. The demand becomes more elastic.
C. The supply decreases.
D. The price decreases.
Answer:
i think its D, cause its what stores want. to make people want to have something so enable to get peoples attention they would make the product more pricy.'
Answer:
A. The demand becomes less elastic.
Explanation:
For ed2020, this is the correct answer.
Which of the following is true about services?
A. The customer is the input.
B. The customer takes an active part in the service.
C. Compared to goods, capacity management of services is more difficult to manage.
D. Production and consumption of services occur simultaneously.
E. All of the above are true.
Answer:
The correct answer is the option E: All of the above are true.
Explanation:
To begin with, in the field of marketing the services are considered to be very different from the products in terms of characteristics because the first ones are always unique, intangible and heterogenous. Moreover, they cannot be stored and its production and consumption happens at the same time because when someone demands for a service then that particular job happens, therefore meaning that is being produced and consumed at the same moment. In addition to that, it is quite obvious that when the service is happen the costumer is taking active part in it due to the fact that the service is focus on him and that is why that the client is an input as well.
BlueInk Corporation's accumulated depreciation increased by $14,000, while patents decreased by $3,875 between consecutive balance sheet dates.There were no purchases or sales of depreciable or intangible assets during the year. In addition,the income statement showed a loss on sale of land of $1,950. Accounts receivable increased $6,320, inventory decreased $3,125, prepaid expenses decreased $720, and account payable increased $2,760.Required:Reconcile a net income of $55,000 to net cash flow from operating activities.
Answer:
Net cash flow from operating activities $69,285
Explanation:
The computation of the net cash flow from operating activities is shown below:
Cash flow from operating activities
Net income $55,000
Adjustments made to reconcile
Add: Depreciation expense $14,000
Less: Increase in account receivable -$6,320
Add: Decrease in inventory $3,125
Add: Decrease in prepaid expense $720
Add: Increase in account payable $2,760
Net cash flow from operating activities $69,285
What technological superiority a major factor in the conquest of the Americas?
Answer: superior military technology
Explanation:
Superior military technology was a major factor in the conquest of the Americans. The Spaniard's horses and cannons got their soldiers afraid while the armor and the metal helmets the Spanish had protected them from arrows and spears.
The discontent and the division in the other party also helped the Spanish. The Spanish also seemed immune to certain diseases, which gave them the impression that their gods was more powerful.
Equity method journal entries (price greater than book value) An investor purchases a 25% interest in an investee company, and the investor concludes that it can exert significant influence over the investee. The book value of the investee’s Stockholders’ Equity on the acquisition date is $500,000, and the investor purchases its 25% interest for $145,000. The investor is willing to pay the purchase price because the investee owns an unrecorded (internally developed) patent that the investor estimates is worth $80,000. The patent has a remaining useful life of 10 years. Subsequent to the acquisition, the investee reports net income of $100,000, and pays a cash dividend to the investor of $20,000. At the end of the first year, the investor sells the Equity Investment for $180,000. Prepare all of the required journal entries to account for this Equity Investment during the year.
Answer:
See answer an explanation below.
Explanation:
The journal entries will look as follows:
General Journal
Description Debit ($) Credit ($)
Equity investment 145,000
Cash 145,000
(To record purchase of investment.)
Cash 25,000
Income from equity investment (w.1) 25,000
(To record equity income.)
Cash 20,000
Equity investment 20,000
(To record receipt of cash dividend.)
Income from equity investment 2,000
Equity investment (w.2) 2,000
(To record patent amortization expense.)
Cash 180,000
Gain on sale of equity invest. (w.4) 32,000
Equity investment (w.3) 148,000
(To record sale of investment.)
Workings
w.1: Income from equity investment = Investee's net income * Percentage of interest = $100,000 * 25% = $25,000
w.2: Equity investment = (Patent value / Remaining useful life) * Percentage of interest = ($80,000 / 10) * 25% = $8,000 * 25% = $2,000
w.3: Equity investment = $145,000 + $25,000 - $20,000 - $2,000 = $148,000
w.4: Gain on sale of equity investment = Sales proceed - w.3 = $180,000 - $148,000 = $32,000
Tony’s business has been struggling for a while his marketing strategy has not worked with the consumers his business has reached the stage words market value is an all time low Tony plans to sell his business Gavin an entrepreneur has been interested in buying Tony’s business for a while currently Gavin is in an ideal position to buy Tony’s business because it is ___ (fill in the blank)
Answer:
selling
Explanation:
Cynthia requested a two-week leave from her employer to go on a religious pilgrimage. The pilgrimage was not a requirement of her religion, but Cynthia felt it was a "calling from God." Will it violate Title VII if Cynthia's employer does not grant her the leave? Explain. Compare with a case in which the UPS Jehovah's Witness employee's supervisor denied his request for a schedule accommodation to allow him to attend the annual religious service, terminated the new employee a few days later, and placed him on a do- not-rehire list.
Answer:
For Cynthia
No, it is not a sincerely held belief and does not take place of religion
For the UPS Jehovah Witness employee
Yes, no reasonable good-faith accommodation was made.
Explanation:
Title VII is also called the Civil Rights Act of 1964. It outlaws any form of discrimination in the grounds or race, religion, color, sex, country of origin, and sexual orientations.
In this scenario Cynthia's pilgrimage was not a requirement of her religion, but Cynthia felt it was a "calling from God." So it does not violate Title VII because it is not a sincerely held belief and cannot be classified as religion.
However in the case of the Jehovah Witness employee he wanted to attend a annual religious service. His request was rejected and his employment terminated.
This is discrimination based on religion and is a violation of Title VII
An individual who suffers from a self-reference criterion should learn to take into consideration the ________ before making an international marketing decision.a. total cost of goods soldb. home country valuesc. competitor stanced. culture of the other countrye. global resources
Answer: culture of the other country
Explanation:
Self reference criterion is simply influence of an individual's culture on his or her behavior in certain situations. Individuals try as much as possible to respond in a way associated with their culture when faced with certain situations.
An individual who suffers from a self-reference criterion should learn to take into consideration the culture of the other country before making an international marketing decision. This is necessary to Foster good working relationship.
Does Svensons find a refrigerator value that $2300 on sale for $1900 they decided to withdraw $500 from savings to use as a down payment on the purchase of a refrigerator and took out a loan to pay the balance choose the true statement
A.The Svensons Assets increased by $1400
B.The Svensons Assets increased by $1800
C.The SvensonsI said to increase by $1900
D.The Svensons assets increased by $2300
Answer:
B.The Svensons Assets increased by $1800
Explanation:
The Svensons assets increased by $1,800 because even if they purchased the refrigerator for $1,900, the market value of the refrigerator is $2,300, so their assets initially increase by this amount.
However, they also withdraw $500 from their savings to pay for the refrigerator, meaning that this asset account is reduced by the same amount.
Thus, an initial increase of $2,300 minus a later decrease of $500 gives us a final $1,800 increase.
The actual production of Lululemon's high-quality clothing for yoga and related sports activities using the very best technical fabrics is an example of:___________
Answer:
d. Strategy implementation
Explanation:
Since in the question it is mentioned that the actual production of great quality clothing for the yoga and the sports activities that are related with the yoga should using the best fabrics so here it is an example of strategy implementation as the strategy is implemented to provide the high quality clothing for the yoga purpose
Hence, the correct option is d.
Suppose that an investor with a 5-year investment horizon is considering purchasing a 7-year 9% coupon bond selling at par. The investor expects that he can reinvest the coupon payments at an annual interest rate of 9.4% and that at the end of the investment horizon 2-year bonds will be selling to offer a yield to maturity of 11.2%. What is the total return for this bond
Answer:
50.34%
Explanation:
initial investment = $1,000 (bond purchased at par value)
annual coupon = $1,000 x 9% = $90
period cash flow
year 0 -$1,000
year 1 $90
year 2 $90 + ($90 x 0.094) = $98.46
year 3 $90 + ($188.46 x 0.094) = $107.71524
year 4 $90 + ($296.17524 x 0.094) = $117.84
year 5 $90 + ($414.02 x 0.094) = $128.92
at the end of year 5, the investor will have $542.94, plus he/she will still own the bond
the price of the bond at year 5 will be:
0.112 = {90 + [(1,000 - MV)/2]} / [(1,000 + MV)/2]
0.112 x [(1,000 + MV)/2] = 90 + [(1,000 - MV)/2]
0.112 x (500 + 0.5MV) = 90 + 500 - 0.5MV
56 + 0.056MV = 590 - 0.5MV
0.556MV = 534
MV = 534 / 0.556 = $960.43
the investor's total return = [($542.94 + $960.43) / $1,000] - 1 = ($1,503.37 / $1,000) - 1 = 0.50337 x 100 = 50.34%
expalin Robbin's defination of economics
Answer:
In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”
Explanation:
I hope this helps!
Can an internal diversity program support an organization’s overall mission and vision? How?
Answer and Explanation:
An internal diversity program support focused on the overall mission and the vision by balancing the diversity in the organization. Also it provides the opportunities for employees so that the organization could be succeeded
It creates an awareness for inclusion area and the intercultural management
By this way it supports overall mission and vision
Operating Activity Investing Activity Financing Activity A pharmaceutical company buys marketing rights to sell a drug exclusively in East Asian markets. A company records a decrease in its total raw materials inventory from the previous year. Yum Co. uses cash to repurchase 10% of its common stock Fitzi Chemical Co. carns revenue from its cash receipts from royalties. Len Corp. reported net sales of $300 million last year and generated a net income of $66.00 million. Last year's accounts receivable increased by $29 million. What is the maximum amount of cash that Len Corp. received from sales last year? a. $203.25 million b. $271.00 million c. $95.00 million d. $135.50 million
Answer:
b. $271.00 million
Explanation:
Cash received = Net sales - Increase in accounts receivable
Cash received = $300 million - $29 million
Cash received = $271 million
Hence, the maximum amount of cash that Len Corp. received from sales last year is $271 million
What is not a potential risk of purchasing a used car?
O used cars can require repairs sooner
O warranties can be very limited
O used cars can have lower initial cost
unexpected issues may arise
Answer:
used cars can have lower initial cost
Explanation:
Remember, the term risk often refers to an unpleasant or unwelcome event such as a loss arising from a particular action.
Hence, since we are looking for what is not a loss (potential risk) of purchasing a used car, the best option that matches this is that used cars have a lower initial cost which ofcourse can be seen as an advantage.
The fact that "used cars can have lower initial cost" is not a potential risk.
Potential risk in this context refers to various risk or issues that the used car can develop in the course of active use of the purchased car.
Usually, cars which are bought fairly requires more repair and maintenance than newly bought carsUsed cares are very susceptible to break-down at any point in time.Some others potential risk to this context includes:
They are less reliable because its good moment have been used by previous user.Ignorance of how the car have been managed in past may prove costly ir the routine is not adhered to.A used car usually have a shorter or no warranty.In conclusion, as this context i concern, the car having a lower initial cost is not a potential risk because the value ofa used car is expected to drop.
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What is the importance of the Define Phase in terms of its placement in the DMAIC method? a) It provides the data collection prior to data analysis b) It clarifies the problem, the process and the customer of the process prior to data collection c) It provides monitoring of the solution in order to sustain the gains d) It takes the data and process analysis into account in order to develop solutions
Answer:
b) It clarifies the problem, the process and the customer of the process prior to data collection
Explanation:
DMAIC is the acronym representing the steps taken in the lean six sigma programme to increase efficiency.
The steps are define, measure, analyse, improve, and control.
Define is the first stage at which the need of the process client is determined. Process knowledge is obtained by interacting with the participants.
In this stage we ensure there is alignment between project focus and goals of organisational leadership.
From the following list of steps in the accounting cycle, identify what two steps are missing:
a. Transactions are analyzed and recorded in the journal. b. Transactions are posted to the ledger. c. An unadjusted trial balance is prepared. d. An optional end-of-period spreadsheet is prepared. e. Adjusting entries are journalized and posted to the ledger. f. An adjusted trial balance is prepared. g. Financial statements are prepared. h. A post-closing trial balance is prepared.
Answer:
d. Adjustment data are assembled and analyzed.
h. Closing entries are journalized and posted to the ledger.
Explanation:
The fourth step is missing which is to adjust the data. After the unadjusted trial balance is prepared, if the debit side and the credit side do not match, the data will need to be adjusted and that is what this step is for.
The penultimate step is also missing being the journalizing of the closing entries and posting them to the ledger. This is done to close out the accounts for the year and bring all accounts except permanent ones to zero.
Collins Company had the following cost data available. The Collins accountant believes that direct labor hours is the correct cost driver to use to predict and manage these costs.$100,000; 15,000 direct labor hours for January$80,000; 12,000 direct labor hours for February$90,000; 14,000 direct labor hours for March$75,000; 11,000 direct labor hours for April$85,000; 12,500 direct labor hours for May$70,000; 10,000 direct labor hours for JuneUse the high-low method to compute the total amount of monthly fixed costs for Collins Company.
a) $10,000b) $0c) $15,000d) $90,000e) $60,000f) $30,000
Answer:
a) $10,000
Explanation:
The computation of the fixed cost by using high low method is shown below:
Before that first we have to determine the variable cost per direct labor hours which is shown below:
Variable cost per hour = (High Operating cost - low operating cost) ÷ (High labor hours - low labor hours)
= ($100,000 - $70,000) ÷ (15,000 hours - 10,000 hours)
= $30,000 ÷ 5,000 hours
= $6
Now the fixed cost equal to
= High operating cost - (High labor hours × Variable cost per hour)
= $100,000 - (15,000 hours × $6)
= $100,000 - $90,000
= $10,000
hence, the correct option is a . $10,000
Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.A. Must pay a business (corporate) income tax.B. When the business cannot pay its debts, creditors can take the owners' personal assets. C. All owners can have management duties. D. The owners are often referred to as members. E. Ownership is split among two types of owners: general and limited partners. F. Owners have limited liability.
Answer and Explanation:
The categorization is shown below:
a. Neither should be selected as partnership and LLC are through entities and for the income tax is calculated on personal income tax
b. General partnership as it contains the unlimited liabilities
c. LLC as it contains the equal status in this type of business organization.
d,. LLC as it is standardized according to the organization articles
e. Neither should be selected as general and limited should be come under the limited partnership
f. LLC should be selected as in this, owners have the limited liability
As the manager of a Papa Sean's restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting equation:a. Increase one asset and decrease another asset. b. Decrease an asset and decrease equity. c. Decrease an asset and decrease a liability. d. Increase an asset and increase equity. e. Increase an asset and increase a liability.
Answer:
Papa Sean's Restaurant
Transactions that affect the Accounting Equation:
a. Increase one asset and decrease another asset.
Cash of $40,000 is received from customers on account.
b. Decrease an asset and decrease equity.
A wage expense of $56,000 is paid for the period
c. Decrease an asset and decrease a liability.
Suppliers are paid $67,000 on account.
d. Increase an asset and increase equity.
Customers are billed $90,000 for services rendered in the month.
e. Increase an asset and increase a liability.
The company purchases equipment worth $35,000 on account.
Explanation:
The accounting equation shows that for each financial transaction of a business affects at least two accounts and may involve the two sides of the accounting equation or affect two accounts on one side of the equation. This implies that the equation is always in balance. The accounting equation also explains the duality of business transactions.