Answer:
Results are below.
Explanation:
Giving the following information:
Sales (3,000 units) $120,000
Variable expenses 90,000
Contribution margin 30,000
Fixed expenses 27,000
Net operating income $3,000
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= 30,000/3,000= $10
a) Sales= 3,100
Contribution margin= 3,100*10= 31,000
Fixed expense= (27,000)
Net operating income= 4,000
b) To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 27,000/10
Break-even point in units= 2,700
c) Finally, the degree of operating leverage:
Degree of operating leverage= % change in income/ % change in sales
Degree of operating leverage= [(4,000-3,000)/3,000] / [(3,100-3,000) / 3,000]
Degree of operating leverage= 10
. A consumer electronics company introduced a new music system into the market with multiple features like built in alarm, mobile and iPod charger, radio and many more. The company is trying to influence the _____ perspective of quality by providing multiple features in a single
Answer:
a. product
Explanation:
Since in the question it is mentioned that the consumer electronics company launched a new music system that contains the various features like alarm, mobile & iPod charger, radio and etc
So here the company wants to influence the product by displaying the features of the company so that the chances of sale of the product could be high
Therefore the option a is correct
One major advantage of pure competition compared to a monopoly is that:
A. More capital is available for research and development
B.businesses have more incentives to keep prices low
C. Economies of scale become less important
D. Consumers have to make fewer economic choices
Answer: businesses have more incentives to keep prices low.
Explanation: just took the test
Answer:businesses have more incentives to keep prices low.
Explanation:
Marigold Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $192000 loss in the year of disposal. The loss on disposal of the segment was $99000. If the tax rate is 30%, and income before income taxes was $1630000.
a. the income tax expense on the income before discontinued operations is $378300.
b. the income from continuing operations is $1141000.
c. net income is $1339000.
d. the losses from discontinued operations are reported net of income taxes at $291000.
Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000
The widespread acceptance that bacteria causes diseases helped lead to a public health movement in the late nineteenth and early twentieth centuries. This movement eventually brought sewers, clean drinking water, and garbage removal to all U.S. cities. The public health movement in the United States in the late nineteenth and early twentieth centuries was like a technological advance to the country's production possibilities, since both ____________ expanded secured the economy's productive capacity, the former by increasing the nation's ________ degree of sophistication effective workforce .
Answer:
1. expanded
2. effective workforce
Explanation:
The widespread acceptance that bacteria causes diseases helped lead to a public health movement in the late nineteenth and early twentieth centuries. This movement eventually brought sewers, clean drinking water, and garbage removal to all U.S. cities.
The public health movement in the United States in the late nineteenth and early twentieth centuries was like a technological advance to the country's production possibilities, since both EXPANDED the economy's productive capacity, the former by increasing the nation's EFFECTIVE WORKFORCE .
Eaton Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,000 nubby tires and 10,000 smooth tires each year and incurs $172,000 of overhead costs. The following information is available:
Activity Total Cost Cost Driver
Materials handling $60,000 Number of requisitions
Machine setups 55,000 Number of setups
Quality inspections 57,000 Number of inspections
For the nubby tires, the company has 400 requisitions, 200 setups, and 200 inspections. The smooth tires require 600 requisitions, 300 setups, and 400 inspections.
Determine the overhead rate for each activity.
Answer:
Materials handling= $60 per requisition
Machine setups= $110 per setup
Quality inspections= $95 per inspection
Explanation:
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
Materials handling= 60,000/1,000= $60 per requisition
Machine setups= 55,000/500= $110 per setup
Quality inspections= 57,000/600= $95 per inspection
for countries the term specialization refers to
Answer:
we need more info
Explanation:
there's only those words nothing else
On December 31, 2012, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
Contract price $520 million
Estimated construction costs $300 million
Estimated total profit $220 million
During the three-year construction period, Tri-State incurred costs as follows:
2013 $ 30 million
2014 $180 million
2015 $ 90 million
Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the revenue recognized in 2013, 2014, and 2015?
A. $52 million, $312 million, $156 million
B. $12 million, $72 million, $36 million
C. $140 million, $140 million, $140 million
D. $30 million, $180 million, $90 million
E. None of the above
Answer: A. $52 million, $312 million, $156 million
Explanation:
The percentage of the total cost incurred in a year is the percentage of revenue to recognize in that year.
2013 Revenue;
= (30/ 300) * 520
= $52 million
2014 Revenue;
= (180/300) * 520
= $312 million
2015
= (90/300) * 520
= $156 million
Presented below are a number of balance sheet accounts of Deep Blue Something, Inc.
A. Debt Investments.B. Treasury Stock.C. Common Stock.D. Dividends Payable.E. Accumulated Depreciation—Equipment.F. Construction in Process.G. Petty Cash.H. Interest Payable.I. Deficit.J. Equity Investments (ownership stake of less than 20%).K. Income Taxes Payable.L. Unearned Subscriptions Revenue.M. Work in Process.N. Salaries and Wages Payable.Instructions:
For each of the accounts above, indicate the proper balance sheet classification. In the case of borderline items, indicate the additional information that would be required to determine the proper classification.
Answer:
Balance sheet accounts Proper balance sheet classification
(a)Debt Investments - Current asset
(b)Treasury Stock - Stockholders equity
(c)Common Stock - Stockholders equity
(d)Dividends Payable - Current Liability
(e)Accumulated Depreciation—Equipment - Property, Plant and Equipment & Fixed asset
(f)Construction in Process - Current asset
(g)Petty Cash. - Current asset
(h)Interest Payable - Current Liability
(i)Deficit - Stockholder's Equity
(j)Equity Investments (ownership stake of less than 20%). - Current asset
(k)Income Taxes Payable - Current Liability
(l)Unearned Subscriptions Revenue - Current Liability
(m)Work in Process - Current asset
(n)Salaries and Wages Payable - Current Liability
The balance sheet classification works primarily on the principle of the accounting equation which is stated as Assets = Liability + Equity.
Classification of Items in the Balance Sheet
All Assets go on the left side, while all liability and equity-related items go on the right side.
Assets (Left Side of the Balance Sheet)
Current Assets
Petty CashWork in ProcessDebt InvestmentsNon-Current Assets
Construction in ProcessLiabilities (Right side of the Balance Sheet)
Unearned Subscriptions RevenueDividends PayableInterests PayableDeficitsIncome Taxes PayableSalaries and Wages PayableEquity/Equity Related Items (Right side of the balance sheet under Liabilities)
Common StockContra Assets Items
These items are neither assets or liability. They are:
Borderline Item
Equity Investments (Onwerhsip stake of less than 20%).
This is a borderline item because where it is placed in the asset section is determined by how long Deep Blue Somthing Inc. intends to hold it. If the company intends to hold it for less than or equal to a year, it is classified as a current asset. If more than a year, it is classed as a Non-current Asset.
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In the past 20 years the United States has entered into several "free trade agreements." The commonality of these free trade agreement has been making it easier for foreign companies to sell their goods in the United States (imports) and for American companies to sell their goods overseas (exports). In your initial post, summarize the key points of specific trade agreement the United States has entered into in the last 25 years. Be sure to include the other counties involved and what kinds of trade restrictions and/or tariffs were changed as a result of that agreement. Include citations at the end of your post (should be easy to find info on trade agreements on the web). In your response posts please discuss how you think these trade agreements have impacted the United States. Be sure to include in your response something about which Americans benefit form the agreement, which Americans are hurt by the agreement, and the impact the agreement has had on GDP.
Answer:
A specific trade agreement would be the US - Colombia trade agreement, which was signed on 2006.
Explanation:
This trade agreement reduced 80% of tariffs that used to applied to goods exported from the U.S. to Colombia, and from Colombia to the U.S.
The agreement benefits consumers in both countries because it allows each country to specialize in the production of those goods that they do best, for example, coffee in the case of Colombia, and industrial goods in the case of the United States.
However, because the United States is a much more powerful country, with a higher level of development, consumers in the US have benefited more than Colombian consumers.
Year1-Year Forward Rate 15.8% 26.4% 37.1% 47.3% 57.4%What would the yield to maturity be on a four-year zero-coupon bond purchased today
Answer:
b. 6.65%
Explanation:
Note: The organized question is attached below
Yield of maturity = [(1+forward rate of years 1) * (1+forward rate of years 2) * (1+forward rate of years 3) * (1+forward rate of years 4)]^(1/4) - 1
Yield of maturity = [(1+5.8%) * (1+6.4%) * (1+7.1%) * (1+7.3%)]^(1/4) - 1
Yield of maturity = (1.058 * 1.064 * 1.071 * 1.0730)^(1/4) - 1
Yield of maturity = 1.293649093296^(1/4) - 1
Yield of maturity = 1.06648345438 - 1
Yield of maturity = 0.06648345438
Yield of maturity = 6.6483%
Yield of maturity = 6.65%
Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.
Answer:
Summary of costs to be accounted for
Costs to be accounted for: Materials Conversion Total
Beginning WIP 0 0 0
Costs incurred in the period $142,800 $390,960 $533,760
Total costs to be accounted for $142,800 $390,960 $533,760
Calculation of cost per equivalent unit
Materials Conversion Total
Total costs to be accounted for $142,800 $390,960 $533,760
Total equivalent units 35,700 32,580
Cost per equivalent unit $4 $12 $16
Cost allocation
Materials Conversion Total
Units finished and transferred $122,000 $366,000 $488,000
Ending WIP $20,800 $24,960 $45,760
Total costs to be accounted for $142,800 $390,960 $533,760
Explanation:
beginning WIP 0 units
units started and completed 30,500
ending WIP 5,200
100% complete for materials
40% complete for conversion costs (2,080 EU)
total EU:
materials 35,700
conversion 32,580
total costs:
materials 35,700 x $4 = $142,800
conversion 32,580 x $12 = $390,960
total = $533,760
Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).
General Ledger
M. Muncel, Capital Acct. No. 301 Salaries Expense Acct. No. 622
Date PR Debit Credit Balance Date PR Debit Credit Balance
May 31 G2 88,000 May 31 G2 44,000
M. Muncel, Withdrawals Acct. No. 302 Insurance Expense Acct. No. 637
Date PR Debit Credit Balance Date PR Debit Credit Balance
May 31 G2 63,000 May 31 G2 5,460
Services Revenue Acct. No. 401 Rent Expense Acct. No. 640
Date PR Debit Credit Balance Date PR Debit Credit Balance
May 31 G2 155,056 May 31 G2 11,520
Depreciation Expense Acct. No. 603 Income Summary Acct. No. 901
Date PR Debit Credit Balance Date PR Debit Credit Balance
May 31 G2 21,000
Required:
1. Prepare closing journal entries from the above ledger accounts.
2. Post the above entries to their respective ledger accounts in the order entered under Part 1.
Answer and Explanation:
Answer and explanation attached
observe in the ledger accounts that we have posted to ledger accounts using our journal entries
Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $350,640. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 42,000 units of CC1 and 111,000 units of CC2 next year.
CC1: Direct material per unit $37.10, Direct Labor Dollars Per Unit $22.40
CC2: Direct material per unit $25.20, Direct Labor Dollars Per Unit $15.40
Required:
Compute the plantwide overhead rate for next year.
Answer:
Units of what?
Explanation:
True/ false. Initiative means acting only when asked to.
In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was able to change the names of vendors in the computer system to his name. As a result, the employee could create false invoices and then cut a check for the false invoice. The name on the check would be changed to the name of the employee. After the check was printed, the name in the system could then be changed back to the appropriate vendor. The check register would show only the name of the vendor. The fraudulent employee had authorization to sign checks under $1,000. By writing small checks, the employee was able to defraud the company of $10,000. This fraud was caught by accident then the employee of another department was looking through the vendor list on her computer after the fraudulent employee had changed the vendor name to his name. A few entries later, the vendor name changed again. She wondered how this could occur and asked her supervisor. Soon after, the fraudulent employee was caught.
1. What kind of fraud is being committed?2. What percent of frauds are of this type?3. How could this fraud have been prevented?
Answer:
- This type of fraud is check tampering
- It amounts to 20.1% of fraud cases in small businesses, and 8.4% of fraud in large businesses
- This type of fraud can be prevented by rotating employees that handle check issuance to vendors, review of budget versus actual expenditure, monitoring of audit trail to see if beneficiary was changed, daily statement download for reconciliation, and restriction of functions for example a employee that issues checks should not also reconcile bank statement.
Explanation:
Check tampering is a very common fraud that involves changing the beneficiary of a valid check so that funds can be diverted.
In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.
Various internal control measures can be taken to prevent this and they are listed above
You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds_____.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay_____interest rates because of differences in the bonds.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds_____.
You would expect a bond issued by New York State to pay_____interest rate as compared to a bond issued by the federal government.
Answer:
You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds Credit Risk.
The United States has the safest securities in the World and so pay different rates from other countries to reflect this especially with an Eastern European Government that is not as trusted.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay higher interest rates because of differences in the bonds.
Bond with longer maturity terms are riskier as they will be exposed to more inflation and interest rate risk.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds Credit Risk.
Coca-Cola is a big company with many assets that back up any leverage it has and so they will have a lower risk than a person with a small business in a garage that might be unable to keep up with payments and default.
You would expect a bond issued by New York State to pay higher interest rate as compared to a bond issued by the federal government.
The Federal Government will be less riskier than New York when it comes to repaying debt because if push comes to shove they can simply print more dollars. They also have higher revenue streams than New York State which means that New York is riskier and will therefore pay a higher interest rate to compensate.
what is marketing information system
Answer:
go to malllllllllllllllllllll
Much has been written about how to identify and interpret signs that indicate that a new organizational form is needed. Grinnell and Apple have identified five signs in addition to those previously described in Section 3.625:Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements.There is a high commitment to getting project work done, but great fluctuation in how well performance specifications are met.Highly talented specialists involved in the project feel exploited and misused.Particular technical groups or individuals constantly blame each other for failure to meet specifications or delivery dates.Projects are on time and to specification, but groups and individuals aren’t satisfied with the achievement. Grinnell and Apple state that there is a good chance that a matrix structure will eliminate or alleviate these problems. Do you agree or disagree? Does your answer depend on the type of project? Give examples or counterexamples to defend your answers.
Explanation:
I agree that the matrix structure will alleviate these problems encountered.
The matrix structure is a model characterized mainly by its flexibility. The organizational structure of the matrix structure is organized in work groups according to the project being carried out in the company, making the work functions more defined and dynamic, being able to change whenever there are new projects in view.
This structure helps companies to create greater autonomy in carrying out work, increasing coordination and satisfying specialization, which generates greater motivation in employees, increasing participation in the decision-making process, generating more innovation and productivity and the speed with which employees projects are finalized.
During job interviews, potential employers often ask candidates to describe a time where they have demonstrated their initiative and/or results driven skills. This week, you’ll have a chance to practice.
In paragraph 1, describe a time at work, home, or school where there was a problem and you took the initiative to solve that problem and to seek results on your own.
In paragraph 2, explain how the process went and describe the solution that you developed.
Answer:
During a pandemic everyone and everything is crazy and it hasn't gone very for me at work or at home. I guess that's why they say it's best for you stay home and quaretine for days because of a test that came back positive.
Explanation:
The following information is available for Windsor Inc. for the year ended December 31, 2017:_______.
Loss on discontinued operations $66,000 Retained earnings January 1, 2017 $1,260,000
Rent revenue 98,000 Selling expenses 876,000
Income tax applicable to continuing operations 297,000 Income tax applicable to loss on discontinued operations 23,000
Administrative expenses 507,000 Cost of goods sold 1,648,000
Loss on write-down of inventory 37,000 Sales revenue 3,775,000
Gain on sale of equipment 31,000 Cash dividends declared 230,000
Unrealized gain on available-for-sale securities 27,000 Interest expense 57,000
200,000 shares were outstanding during all of 2017.
Answer:
Requirement
Prepare Income statement
Calculate the per share of common stock
Windsor Inc.
Income statement for the year ended December 31, 2017
Sales $3,775,000
Less: Cost of goods sold $1,648,000
Gross profit $2,127,000
Operating expenses
Selling expenses $876,000
Administrative expenses $507000
Total operative expenses $1,383,000
Operative income $744,000
Other revenues and (expenses):
Rent revenue $98000
Gain on sale of equipment $31000
Interest expenses ($57,000) $72,000
Income before income taxes $816,000
Income tax applicable to continuing $297,000
operations
income from continuing operations $519,000
Discontinued operations:
Loss on discontinued operations ($66000)
Income tax applicable to loss on ($23,000)
discontinued operations
Total discontinued operations $89,000
Income before extraordinary item $430,000
Extraordinary item:
Loss on write-down of inventory ($37000)
Income after extraordinary item $393,000
Other comprehensive income:
Unrealized gain on available-for-sale securities $27,000
Comprehensive Income $420,000
EPS = Net Income of a company / Outstanding Shares
EPS = $420,000/200,000
EPS = $2.1 per share
What do you need to provide in order to get secured credit?
A. An asset
B. A co-signer
C. A credit card
D. A tax refund
Answer:
The answer is A
Explanation:
got it right on Ed.
You need to provide an asset in order to get secured credit. The appropriate response is Option A.
What is an asset?An asset is any resource controlled or owned by a business or economic entity in financial accounting. It is anything that has the potential to generate positive economic value. Assets are ownership values that can be converted into cash.
An asset is defined as anything of value or a valuable resource that can be converted into cash. Individuals, businesses, and governments all own assets. An asset may generate revenue for a company, or the company may benefit in some way from owning or using the asset.
A secured credit is a type of credit that is backed by a asset , which serves as collateral on default of payments.
Hence, the appropriate response is option A.
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why is entrepreneurship important to society?
Answer:
Etrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.
Explanation:
Hope I helped
A client agrees to pay a contractor $15,000 down towards a $45,000 job.
When his accountant is journalizing the transaction, how much should be
posted as accounts receivable?
A. $15,000
B. $0
O C. $45,000
D. $30,000
Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Debit Credit
Cash $1,230
Accounts Receivable 2,000
Prepaid Insurance 2,300
Notes Receivable (long-term) 3,000
Equipment 12,000
Accumulated Depreciation $ 2,600
Accounts Payable 5,420
Salaries and Wages Payable 1,000
Income Taxes Payable 2,900
Deferred Revenue 600
Common Stock 2,400
Retained Earnings 1,000
Dividends 300
Sales Revenue 42,030
Rent Revenue 300
Salaries and Wages Expense 21,600
Depreciation Expense 1,300
Utilities Expense 4,220
Insurance Expense 1,400
Rent Expense 6,000
Income Tax Expense 2,900
Total $58,250 $ 58,250
M4-17
Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The Journal entry is shown below:-
1. Sales Revenue Dr, $42,030
Rent Revenue $300
To Salaries and Wages Expense $21,600
To Depreciation Expense $1,300
To Utilities Expense $4,220
To Insurance Expense $1,400
To Rent Expense $6,000
To Income Tax Expense $2,900
To Retained Earnings $4,910
(Being closing of revenues and expenses is recorded)
2. Retained Earnings Dr, $300
To Dividends $300
(Being closing of dividend is recorded)
Categories of expenditures
Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Eric's employer upgrades all of its computer systems using U.S.-made parts.
Ginny gets a new refrigerator made in the United States.
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Eric buys a bottle of Italian wine.
Answer:
Categories of expenditures
1. I
Eric's employer upgrades all of its computer systems using U.S.-made parts.
2. C
Ginny gets a new refrigerator made in the United States.
3. X
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
4. G
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
5. M
Eric buys a bottle of Italian wine.
Explanation:
The US Gross Domestic Product (GDP) can be measured using the expenditure approach: Y = C + I + G + (X – M). This expenditure approach calculates GDP by evaluating the sum of all final goods and services purchased in the US economy. The components of the US GDP identified as “Y” in equation form include Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M) with X as exports and M as imports.
You have been hired to create and run a brand new digital forensics lab for a mid-sized police department. Your assignment is to come up with a plan for the lab for the next 3 years.
Answer:
The initial business planning strategy is set for 3 years to run the forensic lab. The hiring process for the lab technicians is required to dealt with care as this is run by police so there should be strict background criminal check of all individuals who are hired in the lab. The financial planning is required for the lab. There should be adequate fund to finance the lab machines purchase. There should be executive team who routinely check the technicians given tasks. There should be routine interim and annual audits to ensure there is no error or deviations from set standards.
Explanation:
The business planning is an important part for any organization. There are various steps of business planning, executive summary, business description, market analysis, company organization processes, products and services analysis, Financial outlook. These steps are important for successful business implementation.
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4 before completing part 5.
Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.
Insurance expired during May is $275.
Supplies on hand on May 31 are $715.
Depreciation of office equipment for May is $330.
Accrued receptionist salary on May 31 is $325.
Rent expired during May is $1,600.
Unearned fees on May 31 are $3,210.
If an amount box does not require an entry, leave it blank or enter "0".
Kelly Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended May 31, 20Y8
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Office Equipment
Accum. Depreciation
Accounts Payable
Salaries Payable
Unearned Fees
Common Stock
Retained Earnings
Dividends
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Net income
Part of question attached
Answer and Explanation:
Please find answer and explanation attached
A comparative balance sheet for Sarasota Corporation is presented as follows.
December 31
Assets 2020 2019
Cash $ 72,680 $ 22,000
Accounts receivable 84,360 68,680
Inventory 182,360 191,680
Land 73,360 112,680
Equipment 262,360 202,680
Accumulated Depreciation-Equipment
(71,360 ) (44,680 )
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
Additional information:
1. Net income for 2020 was $129,720. No gains or losses were recorded in 2020.
2. Cash dividends of $65,680 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Prepare a statement of cash flows for 2020 for Sarasota Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Determine Sarasota Corporation’s current cash debt coverage, cash debt coverage, and free cash flow.
Answer:
Sarasota Corporation
1. Statement of Cash Flows for the year ended December 31, 2020:
Operating Activities:
Net Income $129,720
Non-cash adjustment:
Depreciation 26,680
Cash from operating $ 156,400
Changes in working capital:
Accounts Receivable (15,680)
Inventory 9,320
Accounts Payable (13,320)
Net cash from operating activities $136,720
Investing Activities:
Land 39,320
Equipment (59,680)
Net cash from investing activities $(20,360)
Financing Activities:
Cash dividends $(65,680)
Net cash inflows $50,680
2. Sarasota Corporation's:
a) Current Cash Debt Coverage = Cash from operating activities/Current liabilities
= $136,720/$36,360
= 3.76
b) Cash Debt Coverage = Cash from operating activities/Total liabilities
= $136,720/$186,360
= 0.73
c) Free Cash Flow = Cash from operating activities minus Capital expenditure
= $136,720 - 59,680
= $77,040
Explanation:
a) Data and Calculations:
Sarasota Corporation
Comparative Balance Sheets
As of December 31 2020 and 2019:
Assets 2020 2019 Increase Decrease
Cash $ 72,680 $ 22,000 $50,680
Accounts receivable 84,360 68,680 15,680
Inventory 182,360 191,680 $9,320
Land 73,360 112,680 39,320
Equipment 262,360 202,680 59,680
Accumulated Depreciation-Equipment
(71,360) (44,680) 26,680
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680 13,320
Bonds payable 150,000 200,000 50,000
Common stock ($1 par) 214,000 164,000 50,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
b) The decrease in bonds is not a cash flow. The increase in Common Stock is not a cash flow. The two are exchanges. In calculating the free cash flow, the cash proceeds from sale of land were not taken into consideration because the sale was a one-off transaction and not part of the operating activities of Sarasota Corporation.
Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor
What do successful entrepreneurs have in common?
Answer:
market trends change constantly, funding fall through, business partners flake, and ideas may go wrong
hope this help!