Answer:
Dr Amortization expense $24,550
Cr Copyright asset $24,550
Dr Amortization $10,650
Cr Patent asset $10,650
Explanation:
Preparation of all adjusting entries at December 31 to record amortization required by the events
Based on the information given the adjusting entries at December 31 to record amortization required by the events will be :
Dr Amortization expense $24,550
Cr Copyright asset $24,550
Dr Amortization $10,650
Cr Patent asset $10,650
Calculation for Annual amortization of copyrights
Annual amortization of copyrights = Cost of copyright/Useful life
Annual amortization of copyrights= $122,750/5
Annual amortization of copyrights= $24,550
Calculation for Annual amortization of patent
Annual amortization of patent = Cost of patents/Useful life
Annual amortization of patent= $51,120/4
Annual amortization of patent= $12780
Amortization of patent for 2017 = $12780 x 10/12
= $10,650
Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2018 bank statement included the following information:
Balance, July 1, 2018 $56,428
Deposits 180,100
Checks processed (193,210 )
Service charges (60 )
NSF checks (1,500 )
Monthly loan payment deducted directly by bank from account (includes $520 in interest) (3,620 )
Balance, July 31, 2018 $38,138
The company's general ledger account had a balance of $38,918 at the end of July. Deposits outstanding totaled $6,300 and all checks written by the company were processed by the bank except for those totaling $8,420. In addition, a $2,000 July deposit from a credit customer was recorded as a $200 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement.
Required:
a. Prepare a bank reconciliation for the month of July.
b. Prepare the necessary journal entries at the end of July to adjust the general ledger cash account.
Answer:
A. Corrected bank balance $35,538
Corrected cash balance $35,538
B. 1. Dr Cash 1,800
Cr Accounts receivable 1,800
2.Dr Miscellaneous expense (Bank service charges) 60
Dr Accounts receivable (NSF Check) 1,500
Dr Interest expense 520
Cr Cash 2,080
Explanation:
a. Preparation of a bank reconciliation for the month of July.
BANK RECONCILATION STATEMENT
Bank balance to correct balance
Balance per bank statement $38,138
Add: Deposits outstanding 6,300
Add: Bank error in recording check (300-30) 270
Deduct: Checks outstanding ($8,420)
Corrected bank balance $35,538
Book balance to corrected balance
Balance as per books $38,918
Add: Error in recording cash receipt (2,000-200) 1,800
Deduct: NSF checks (1,500)
Deduct: Automatic monthly loan payment (3,620)
Deduct: Service charges (60)
Corrected cash balance 35,538
b. Preparation of the necessary journal entries at the end of July to adjust the general ledger cash account.
1. Dr Cash 1,800
Cr Accounts receivable 1,800
(Being To record the correct error in recording cash receipt)
2.Dr Miscellaneous expense (Bank service charges) 60
Dr Accounts receivable (NSF Check) 1,500
Dr Interest expense 520
Cr Cash 2,080
(To record credit to cash)
The shift from PPF1 to PPF2 implies all of the following EXCEPT: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the maximum amount of dining sets that can be produced did not change. b the maximum amount of laptop computers that can be produced increased. c the maximum amount of both outputs that can be consumed increased. d the maximum amount of each good that can be produced increased.
Answer:
The shift from PPF1 to PPF2 implies all of the following EXCEPT:
a. the maximum amount of dining sets that can be produced did not change.
Explanation:
A production possibility frontier (PPF) indicates the maximum possible output combinations of two goods or services an economy can produce with the efficient and effective utilization of economic resources. The production possibility frontier illustrates the concepts of opportunity cost, trade-offs and also shows the effects of growth in any given economy. A shift from PPF1 to PPF2 implies an increase.
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7% and has a par value of $1,000. What is its yield to call
Answer:
6.74%
Explanation:
The computation of the yield to call is as followS;
But before that the present value is
Given that
PMT = $1,000 × 8% ÷ 2 = $40
NPER = 30 × 2 = 60
RATE = 7% ÷ 2 = 3.50
FV = $1,000
The formula is shown below:
= -PV(RATE, NPER, PMT, FV,TYPE)
After applying the above formula, the present value is $1,124.72
Now the yield to call is
Given that
PMT = $1,000 × 8% ÷ 2 = $40
NPER = 5 × 2 = 10
PV = $1,124.72
FV = $1,100
The formula is given below:
= RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the yield to call is
= 3.37% × 2
= 6.74%
In 2020, Ryan files as head of household and has taxable income of $122,500. None of his taxable income consists of capital gains or qualified dividends. Using the tax rate schedule, his tax liability rounded to the nearest dollar, totals $______.
Answer: 22,038, 22,037, or 22,036
Explanation:
Taxable liability of Ryan is $22,154
Given:
Household and taxable income = $122,500
Find:
Taxable liability
Computation:
Household and taxable income of Ryan is $122,500
So,
Ryan falls [$84,201 - $160,700] tax range
So,
Taxable liability = 12,962 + (122,500 - 84200) × 24%
Taxable liability = 12,962 + (122,500 - 84200) × 0.24
Taxable liability = 12,962 + (38,300) × 0.24
Taxable liability = 12,962 + 9,192
Taxable liability = $22,154
Learn more:
https://brainly.com/question/17961582?referrer=searchResults
Compare and by converting their income statements to common size. Martinez Rojo Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . $10,900 $19,536 Cost of goods sold. . . . . . . . . . . . . . . . . . 6,660 14,203 Other expense. . . . . . . . . . . . . . . . . . . 3,564 4,356 Net income. . . . . . . . . . . . . . . . . . . . . . . . . $676 $977 Which company earns more net income? Which company's net income is a higher percentage of its net sales?
Answer:
a. Rojo
b. Martinez
Explanation:
When converting the income statement to common size, everything is made a percentage of net sales.
Martinez Rojo
Net Sales 100% 100%
Cost of goods sold (61.1% ) ( 72.7%)
Other expenses (32.7% ) ( 22.3%)
Net Income 6.2% 5.0%
Working
Martinez Rojo
Cost of goods 6,660/10,900 14,203/19,536
Other expenses 3,564/10,900 4,365/19,536
Net income 676/10,900 977/19,536
a. Company with more Net income
= Rojo
b. Company with higher net income as percentage of net sales
= Martinez
A purely domestic firm that sources its products, sells its products, and raises its funds domestically. . Which of the following is not correct?
a. can face stiff competition from a multinational corporation that can source its products in one country, sell them in several countries, and raise its funds in a third country.
b. cannot be more competitive than a MNC on its home turf even if it has superior knowledge of the local market.
c. can still face exchange rate risk, just like a MNC.
d. can still face country risk, just like a MNC.
Answer:
b. cannot be more competitive than a MNC on its home turf even if it has superior knowledge of the local market.
Explanation:
In the given scenario a company that sources its products, sells its products, and raises its funds domestically will most likely have more competitive advantage than a multinational corporation.
This is due to the fact that it has superior knowledge of the local market.
MNCs will have a hard time adapting to the local market to compete effectively with the local companies.
However local businesses and MNCs will face common challenges like country risk and exchange rate risk.
Because MNCs have ability to source its products in one country, sell them in several countries, and raise its funds in a third country they will provide a stiff competition
Pronghorn Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually).
Aug. 2 Invested $12,100 cash and $2,690 of equipment in the business.
7 Purchased supplies on account for $550. (Debit asset account).
12 Performed services for clients, for which $1,180 was collected in cash and
$682 was billed to the clients.
15 Paid August rent $622.
19 Counted supplies and determined that only $295 of the supplies purchased
on August 7 are still on hand.
Date Account Titles and Explanation Debit Credit
Answer:
Date Account Details and Description Debit Credit
Aug. 2 Cash $12,100
Equipment $2,690
Owner's Capital $14,790
Date Account Details and Description Debit Credit
Aug. 7 Supplies $550
Accounts Payable $550
Date Account Details and Description Debit Credit
Aug. 12 Cash $1,180
Accounts receivable $682
Service revenue $1,862
Date Account Details and Description Debit Credit
Aug. 15 Rent expense $622
Cash $622
Date Account Details and Description Debit Credit
Aug 19 Supplies expense (550 - 295) $255
Supplies $255
An accounting professor is considering opening his own consulting firm. To do so, she will have to quit her current job, that pays $125,000 a year, and take over a building that she owns and currently rents to her friend for $15,000 a year. Additionally, she will have to withdraw $50,000 from her savings, that pays 5 percent per year. Her expenses at the firm have been estimated as follows: $80,000 for employee salaries, $6,000 for insurance, $5,000 for utilities, and $9,000 for supplies. She anticipates annual revenues of $250,000. Determine:
Answer:
The answer is "$100,000"
Explanation:
Please find the complete question in the attached file.
Given value:
[tex]\text{Employees salary}= \$ 80,000\\\\\text{Insurance}= \$ 6,000\\\\\text{Utility cost}=\$ 5,000\\\\\text{Supplies}= \$ 9,000[/tex]
[tex]\text{Annual Explicit costs}= ?[/tex]
Formula:
[tex]\text{Annual Explicit costs}= \bold{\text{Employees salary}+ \text{Insurance}+ \text{Utility cost}+ \text{Supplies}}[/tex]
[tex]= \$ 80,000 + \$ 6,000 + \$ 5,000 + \$ 9,000\\\\= \$ 80,000 + \$ 20,000\\\\= \$ 100,000[/tex]
_____ is a method of attempting to settle labor disputes in when a specialist from the federal government helps management and the union focus on the issues and acts as a communication channel through which management and the union can send messages and share information with each other.
Answer: e. Conciliation
Explanation:
This process is known as Conciliation and it falls under the purview of the Federal Mediation and Conciliation Service of the United States.
Conciliation stands out from Mediation because with mediation, the third party that is helping both sides negotiate might not be trained but with Conciliation, the third part is a specialist in the process and thus will be more effective in dealing with the dispute.
Big Lake Bob spends his time carving fishing lures and duck decoys. If Big Lake Bob spends all of his time carving fishing lures he can carve 50 lures in a week. If he spends all of his time carving duck decoys he can carve 25 decoys in a week. For every 5 duck decoys Big Lake Bob carves he must give up 10 fishing lures.
Fill in the values in the table below to complete Big Lake Bob's production possibilities schedule.
Big Lake Bob's production possibilities schedule
Fishing lures Duck Decoys
100 0
0 30
Answer:
Big Lake Bob
Production Possibilities Schedule:
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
Explanation:
Number of fishing lures carved in a week = 50
Number of duck decoys carved in a week = 25
This means that for every 5 duck decoys Big Lake Bob carves, he gives up 10 fishing lures.
Big Lake Bob's production possibilities schedule
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
b) Big Lake Bob's production possibilities Schedule is a table of numbers that illustrates the production possibilities of Bob's economy, with the alternative combinations of two goods that can be produced with limited resources (labor hours, capital, and materials, etc.) and technology.
Solving for dominant strategies and the Nash equilibrium
*Fill in the blanks please :) *
Suppose Paolo and Sharon are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Paolo chooses Right and Sharon chooses Right, Paolo will receive a payoff of 5 and Sharon will receive a payoff of 4.
The only dominant strategy in this game is for _________ to choose __________.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses __________ and Sharon chooses _______.
Question Completion:
Matrix payoff:
Sharon
Left Right
Paolo Left 8, 3 4, 4
Right 5, 3 5, 4
Answer:
The only dominant strategy in this game is for ___Paolo______ to choose ____Right______.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses ____Right______ and Sharon chooses __ Right_____.
Explanation:
a) Paolo's dominant strategy is the strategy that always provides the greater utility to Paolo, no matter what Sharon's strategy is. In this case, the dominant strategy for Paolo is to choose RIGHT always.
b) The Nash Equilibrium concept determines the optimal solution in a non-cooperative game in which each player (e.g. Paolo and Sharon) lacks any incentive to change their initial strategies. This implies that each player can achieve their desired outcomes by not deviating from their initial strategies since each player's strategy is optimal when considering the decisions of the other player.
The following trial balance of Watteau Co. does not balance.
Debit    Credit
Cash $2,870
Accounts Receivable $3,231
Supplies 800
Equipment $3,800
Accounts Payable $2,666
Unearned Service Revenue 1,200
Common Stock 6,000
Retained Earnings 3,000
Service Revenue 2,380
Salaries and Wages Expense 3,400
Office Expense    94000000
$13,371 $16,916
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
a. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
b. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.
c. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
d. A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.
e. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue).
f. A debit posting to Salaries and Wages Expense of $670 was omitted.
g. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
h. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.
Required:
Prepare a correct trial balance.
Answer and Explanation:
The preparation of the correct trial balance is presented below:
Particulars Debit Credit
Cash $2,920
Accounts Receivables $3,051
Supplies $300
Equipment $4,300
Accounts Payables $2,200
Unearned Service Revenue $875
Common Stock $6,000
Dividend $575
Retained Earning $3,000
Service Revenue $3,506
Salaries & Wages $3,495
Telephone Expenses $65
Office Expenses $875
Total $15,581 $15,581
6. Despite multimillion-dollar investments, many IT organizations cannot respond quickly to evolving business needs. Also, they cannot adapt to large-scale shifts like mergers, sudden drops in sales, or new product introductions. Can cloud computing help organizations improve their responsiveness and get better control of their IT costs
Answer:
Yes
Explanation:
In a way Yes. Cloud Computing can allow an IT organization to quickly meet their current changing needs since they have access to all the necessary equipment and computing power by simply making a phone call. That is the main service of Cloud Computing organizations, they provide all the necessary hardware power to IT companies completely remotely. All the IT company would have to do is pay for the extra computing power that they need and they can get it immediately. This will allow them to immediately adapt to changes such as mergers, sudden drops in sales, or new product introductions.
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $345,675 for the year, and machine usage is estimated at 125,700 hours. For the year, $372,125 of overhead costs are incurred and 131,500 hours are used. (a) Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.) Manufacturing overhead rate $enter a dollar amount rounded to 2 decimal places per machine hour
Answer:
Predetermined manufacturing overhead rate= $2.75 per machine hour
Explanation:
Giving the following information:
Overhead costs are estimated to total $345,675 for the year, and machine usage is estimated at 125,700 hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 345,675/125,700
Predetermined manufacturing overhead rate= $2.75 per machine hour
Develop a simple work breakdown structure consisting of at least 25 tasks. This can be hand sketched, photographed, and uploaded here. Consider grouping your identified tasks into the following buckets of work:
a. Obtaining materials and job-site setup/preparation.
b. Removal of barriers to access the house (limbs/overgrowth/nests, etc.).
c. Surface preparation.
d. Painting (primer two coats) of siding and trim.
e. Clean-up.
Answer:
a. Material procured for the construction of theme park
b. The area was cleaned and barriers were removed for the machinery to reach the site.
c. The bulldozer was run over the site and all the broken walls were demolished
d. The construction work started and paint was done.
e. The machinery was removed after the work done.
Explanation:
The site preparation is an important task which is done before any construction work is started. The area is cleaned so that the machinery can reach the site and stay at the work place. The machinery then demolished and smoothens the site area so that the new construction work can be done with ease without any barrier.
Jones signs a three-year contract to construct a new office building for Smith. The contract price is $3 million and estimated cost $2 million. For year one, Jones recognizes $1 million of revenue and $800,000 of cost. During year 2, Jones incurs $1.2 million in cost and estimates that during year 3 an additional $1.1 million will be necessary to complete the project. Actual costs incurred during the third year were $1.2 million. For year 3, Jones should recognize a loss of:____.
a. $100,000.
b. $0.
c. $300,000.
d. $200,000.
Answer:
$100,000
Explanation:
Jones incurs $1.2 million in cost and estimates that during year 3 an additional $1.1 million will be necessary to complete the project
additional costs for year 3 over the estimated costs represent an additional loss}
Fluno Corporation has 1 million shares outstanding at the end of fiscal 2005. Its stock is trading at $15 per share. It issued $0.6 million in dividends, and had net income of $1 million in fiscal 2005. At the end of 2005, its total assets, liabilities, and retained earnings were $25 million, $15 million, and $7.5 million, respectively. Fluno's price-to-book ratio is _____ and Fluno's dividend yield ratios is _____ for 2005.
Answer:
Fluno's price-to-book ratio is 1.5 and Fluno's dividend yield ratios is 4% for 2005.
Explanation:
total equity = $10 million
book value per share = $10 million / 1 million shares = $10 per share
price to book ratio = $15 / $10 = 1.5
dividend per share = $0.6 million / 1 million shares = $0.60 per share
dividend yield ratio = annual dividend / price per share = $0.60 / $15 = 0.04 = 4%
Shandra Corporation (a U.S.-based company) expects to order goods from a foreign supplier at a price of 131,000 pounds, with delivery and payment to be made on April 20. On February 20, when the spot rate is $1.37 per pound, Shandra purchases a two-month call option on 131,000 pounds and designates this option as a cash flow hedge of a forecasted foreign currency transaction. The time value of the option is excluded in assessing hedge effectiveness; the change in time value is recognized in net income over the life of the option. The option has a strike price of $1.37 per pound and costs $1,310. The goods are received and paid for on April 20. Shandra sells the imported goods in the local market by May 31. The spot rate for pounds is $1.42 on April 20. What amount will Shandra Corporation report as foreign exchange gain or loss in net income for the quarter ended June 30
Answer:
Shandra Corporation
The amount which Shandra Corporation will report as foreign exchange gain in net income for the quarter ended June 30 is:
$5,240
Explanation:
Price of goods = 131,000 pounds
Delivery and payment date = April 20
On February 20, the spot rate for call option on 131,000 pounds = $1.37
Cost of the option = $1,310
The spot rate on April 20 = $1.42
The foreign exchange gain or loss to be reported in net income for the quarter ended June 30 = $0.05 ($1.42 - $1.37
Total gain = ($0.05 * 131,000) - $1,310
= $6,550 - $1,310
= $5,240
b) With this call option, which gives Shandra the right to buy the underlying asset, Shandra hedges his contract to purchase goods from a foreign supplier, and therefore, profits when the spot rate increases from $1.37 on February 20 to $1.42 on April 20. The profit made is reduced by the cost of the call option.
For the year, Jensen's has depreciation of $2,058, dividends paid of $125, interest expense of $382, an addition to retained earnings of $3,408, and an increase in common stock of $2,500. The total tax rate is 21 percent. What is the operating cash flow
Answer:
$5,973
Explanation:
The computation of operating cash flow is seen below;
Net income = $125 + $3,408 = $3533
Net income $3,533 - Interest expense $382 - Depreciation $2,058 = EBIT $1,093
Tax = 21% × $1,093 = $229.53
Operating cash flow = $1,093 + $2,058 + $2,700 - $229.53 = $5,973
Which of the following statements is INCORRECT with regard to trends that organizational behavior is addressing?
a. The workforce is getting younger and thus their integration into most organizations will be seamless.
b. Organizations will likely become "shamrock-shaped" in the future.
c. The world is "flattening" so information access is increasing.
d. Outsourcing is becoming a way of life in many organizations.
Answer:
a. The workforce is getting younger and thus their integration into most organizations will be seamless.
Explanation:
An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization
The following statements are correct and true with regard to trends that organizational behavior is addressing;
I. Organizations will likely become "shamrock-shaped" in the future.
II. The world is "flattening" so information access is increasing.
III. Outsourcing is becoming a way of life in many organizations.
However, opining that the workforce is getting younger and thus their integration into most organizations will be seamless is completely false because the workforce would be growing older as their years of active service increases i.e the workforce is getting older.
Below is the complete list of accounts of Sooner Company and the related balance at the end of April. All accounts have their normal debit or credit balance. Cash, $3,200; Prepaid Rent, $6,700; Accounts Payable $3,600; Common Stock, $33,000; Service Revenue, $24,700; Salaries Expense, $7,500; Accounts Receivable, $5,400; Land, $53,000; Deferred Revenue, $1,950; Retained Earnings, $21,250; Supplies Expense, $8,700. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.
Answer:
Trial Balance
Debit Credit
Land 53000
Accounts Receivable 5400
Cash 3200
Prepaid Rent 6700
Accounts Payable 3600
Deferred revenue 1950
Common Stock 33000
Retained earnings 21250
Service Revenue 24700
Salaries expense 7500
Supplies expense 8700
Totals 84500 84500
Explanation:
The trial balance has been made in the answer section.
Suppose you win $1 million in a lottery and your winnings are scheduled to be paid as follows: $400000 at the end of one year, $400000 at the end of two years, and $200000 at the end of three years. If the interest rate is 5 percent, what is the present discounted value of your winnings
Answer:
The present discounted value of the winnings is $916,531.69.
Explanation:
The present discounted values of each of the payment can be calculated using the present value formula as follows:
PV = FV / (1 + r)^n ...................... (1)
Where;
PV = Present discounted value of payment at the end of specified year(s)
FV = Future value or the scheduled amount
r = interest rate
n = year in which the payment is scheduled to be paid
Using equation (1), we have:
PV of payment at the end of one year = $400000 / (1 + 5%)^1 = $380,952.38
PV of payment at the end of two years = $400000 / (1 + 5%)^2 = $362,811.79
PV of payment at the end of three years = $200000 / (1 + 5%)^3 = $172,767.52
The present discounted value of the winnings can now be calculated as the additions of the 3 PVs above as follows:
PV of the winnings = PV of payment at the end of one year + PV of payment at the end of two years + PV of payment at the end of three years = $380,952.38 + $362,811.79 + $172,767.52 = $916,531.69
Therefore, the present discounted value of the winnings is $916,531.69.
Stock A has the following returns for various states of the economy State of the Economy Probability Stock A's Return Recession 9 72 Below Average 16 15 Average 51 16 Above Average 14 35 Boom 10 85 Stock A's expected return is Group of answer choices 13.8 12.7 16.5 9.9
Answer:
the expected return is 12.7%
Explanation:
The computation of the expected return is given below:
Expected return = Respective probability × respective return
= (-72 × .09) + (-15 × .16) + (16 × .51) + (35 × .14) + (85 × .10)
= -6.48% -2.4% + 8.16% + 4.9% + 8.5%
= 12.68%
= 12.7%
Hence, the expected return is 12.7%
The above formula should be used for the same.
[The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 % Raw materials purchases for cash. Direct materials usage. Indirect materials usage. Prepare journal entries for the above transactions for the month of May.
Answer:
Journals have been prepared below !
Explanation:
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
TIMES MIRROR AND GLASS COMPANY
Sales $270,000
Cost of goods sold 130,000
Gross profit $140,000
Selling and administrative expense 43,200
Lease expense 11,700
Operating profit* $85,100
Interest expense 9,300
Earnings before taxes $75,800
Taxes (30%) 30,320
Earnings after taxes $45,480
*Equals income before interest and taxes.
Required:
a. Compute the profit margin ratio.
b. Compute the total asset turnover ratio.
c. Compute the return on assets (investment).
Answer:
a. 9.15 times
b. 4.61 times
c. 31.52%
d. 1.08 times
e. 20.88 %
Explanation:
Note : I have attached the full question as image below.
Interest Coverage = Earnings Before Interest and tax ÷ Interest expense
= $85,100 ÷ $9,300
= 9.15 times
Fixed Charge Coverage = EBIT + Lease Payments ÷ Interest Payments + Lease Payments
= $85,100 + $11,700 ÷ $9,300 + $11,700
= 4.61 times
Profit margin = Operating Profit / Sales x 100
= $85,100 / $270,000 x 100
= 31.52%
Total asset turnover = Sales ÷ Total Assets
= $270,000 ÷ $249,000
= 1.08 times
Return on assets (investment) = Earning Before Interest after Tax / Total Assets x 100
= ($45,480 + $9,300 x 70%) / $249,000 x 100
= 20.88 %
A company that utilizes carbon fiber 3-D printing wants to have money available two years from now to add new equipment. The company currently has $650,000 in a capital account and it plans to deposit $200,000 now and another $200,000 one year from now. The total amount available in two years, provided it returns a compounded rate of 15% per year, is closest to
Answer:
Total amount available in two years is $1,354,125.
Explanation:
The total amount available in two years can be calculated as follows:
Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000
Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125
Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000
Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125
Imagine that you and a friend have developed a new sneaker and would like to manufacture the sneaker and sell it to Foot Locker. In a paragraph state what form of business organization you would select for your company and why. Be specific and include some advantages and
disadvantages of the organization you chose and those that you did not choose.
Answer:
biasnnsjzsnsnjsksslsllshsbsbjzkzmsnam
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $30 million. During the year, pension benefits paid by the trustee were $4 million. Service cost was $10 million. Pension plan assets earned $5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31.
Answer:
The amount of projected benefit obligation is on Dec 31 is $39 million
Explanation:
The computation of the amount of projected benefit obligation is on Dec 31 as follows;
Beginning PBO $30 million
Service cost $10 million
Interest cost (10% × $30) $3 million
Loss (gain) on PBO $0
Less: benefits paid -$4 million
Ending PBO $39 million
Hence, the amount of projected benefit obligation is on Dec 31 is $39 million
The Hawthorne studies found that although financial incentives are important drivers of worker productivity, intrinsic motivation was equally important. intrinsic motivation was equally important. flexible working hours was equally important. flexible working hours was equally important. social factors are more important. social factors are more important. work variety is more important.
Answer:
social factors are more important.
Explanation:
The Hawthorne Studies was a study that centered around the employees that were working at the Hawthorne plant of the Western Electric Company and it was conducted in the 1920s by Elton Mayo and Fritz Roethlisberger.
Basically, the study was focused on examining the socio-psychological aspects of human behavior (employees) working in a business firm or an organization.
The main purpose of the Hawthorne Studies was to analyze, examine and determine how various aspects of the work environment in an organization which typically includes social factors such as break time, lighting, and duration of work hours have on the level of productivity (performance) of employees.
Hence, the Hawthorne studies found that although financial incentives are important drivers of worker productivity, social factors are more important.
how can you ensure that your personal brand remains credible