Answer:
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
Explanation:
The audit opinion formulation generally, is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
This entails that if there has not been sufficient internal controls to to enable fair presentation of Financial Statements, the entity gets a qualified audit opinion (negative report) otherwise if in place, the company gets a unqualified audit opinion (positive report).
A company rents office space for $10,000. The company hasn’t yet recorded payment as an expense in the financial statements because it hasn’t started using the premises.
________ is what is left after a firm pays its variable costs and fixed costs
Profit is what is left after a firm plays its variable costs and fixed costs.
How is the change in cash classified on the statement of cash flows?
a. It is found in the investing activities section of the statement.
b. It is found in the operating activities section of the statement.
c. It is found in the financing activities section of the statement.
d. It is the sum of the investing, operating, and financing activities sections.
Answer:
d. It is the sum of the investing, operating, and financing activities sections.
Explanation:
Change in cash classified on the statement of cash flows is derived by the sum of the Investing cash flow activities + Operating cash flow activities Financing cash flow activities. The balance gotten is known as Net cash flow for the particular period.
At the annual shareholders meeting of the company you work for, the CEO points out that after a record year of cash flow, the company plans to spend significant amounts of that cash in a stock repurchase program. What is one reason the Board of Directors and executive leadership of a company would use its excess cash flow to buy back its own shares?
Answer:
increase their ownership amount of the company
Explanation:
The main reason why shareholders would do this is to increase their ownership amount of the company. Each company only has a certain number of shares available, the entirety of this amount makes up the entire company. The more shares you own, the more of the company you own. Therefore, when there is excess cash flow many shareholders buyback more of their stocks in order to own more of the company, which they think will continue to grow and bring them more profits.
You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 7% interest, compounded annually. You expect to receive annual raise of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than the second, etc.). How much must your first deposit be if you are to meet your goal
Answer:
First deposit will be $11,213.87
Explanation:
To derive how much the first deposit must be, the deposit can be derived by using payment formula for growing annuity
P = FV x (r - g) / [(1 + r)^n - (1 + g)^n]
When FV = $1,000,000
r = 7%
g = 3%
n = 25
Hence, First payment will be:
P = 1,000,000 * (7% - 3%) / (1.07^25 - 1.03^25)
P = 1,000,000 * 4% / 5.427433 - 2.093778
P = 40,000 / 3.333655
P = 11998.842
P = $11,998.84
However, this formula is applicable when the payments are made at the end of the year. In this case the payments are upfront, occurring today. We need to adjust this first payment to reflect the early payment.
Hence, first payment = $11,998.84 / (1 + 7%)
First payment = $11,998.84 / (1 + 0.07)
First payment = $11,998.84 / 1.07
First payment = 11213.8691588785
First payment = $11,213.87
Your strengths represent the best you have to offer in ______ others.a) controlling.
b) influencing.
c) manipulating.d) controlling and manipulating.
"An unexpected benefit of deliberate practice is ______"
Question options :
A. You become more skilled at perceiving situations
B. your life becomes organized
C. you become successful
D. your children learn valuable lessons from watching
Answer:
A. You become more skilled at perceiving situations
Explanation:
Deliberate practice involves focused and careful directed efforts towards improving performance in a chosen field.
deliberate practice brings unexpected benefits such as being able to understand complex patterns and adapting easily to changes. This is because individuals who experience this are able to develop their intuitions in this way
A company purchased a building for $900,000 by obtaining a 30-year mortgage payable. Assume the lending arrangement specifies that the company will pay $20,000 of the principal over the first year, $30,000 in the second year, and the remainder evenly over the final 28 years. What amount of the $900,000 would be classified as a long-term liability at the time the mortgage payable is obtained
Answer:
A total of $880,000 would be classifiad as a long-term liability.
Explanation:
Long-term liabilities are also known as non-current liabilities.
Long-term liabilities consist of all the liabilities that are not due within a year, in other words, that can be paid off for a period of time longer than six months.
In this case, only $20,000 of principal of a total of $900,000 are paid over the first year. The remaining principal payment of $880,000 (plus any interest), is to be paid over the next 29 years, and for this reason, these payments will be recorded in the balance sheet as long-term or non-current liabilities.
Here are selected data for Boston Bracing Company: Estimated manufacturing overhead $236,800 Factory utilities $30,200 Estimated labor hours 35,000 Indirect labor $22,400 Actual direct labor hours 36,000 Sales commissions $53,700 Estimated direct labor cost $320,000 Factory rent $47,700 Actual direct labor cost $320,200 Factory property taxes $28,100 Factory depreciation $66,000 Indirect materials $33,000 If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?
Answer:
Allocated MOH= $236,948
Explanation:
Giving the following information:
Estimated manufacturing overhead $236,800
Estimated direct labor cost $320,000
Actual direct labor cost $320,200
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 236,800/320,000
Predetermined manufacturing overhead rate= $0.74 per direct labor dollar
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.74*320,200
Allocated MOH= $236,948
On 3/15/20, Robertson Corp. bought land from Lear, Inc. for $248,000. Lear had carried the land on its books at $240,000. Robertson paid $50,000 in cash and signed a note payable for the balance. On 12/19/20, Davis Co. offered to buy the land from Robertson for $252,000. On its 12/31/20 balance sheet, Robertson should show the land account at:
Answer:
$248,000
Explanation:
According to the historical cost principle, the fixed assets should be recorded at the purchase price or the acquired price.
Since in the question it is mentioned that the land is purchased from Lear inc for $248,000 and the other transactions are also there
So here the land should be recorded at the purchase price i.e. $248,000
A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to answer Problem 2-54 through 2-56. Select the closest answer.2-54 How many units per year must be sold for the company to breakeven?a.4,800b.3,000c.8,000d.6,667e.4,0002-55 If 10,000 units per year are sold, what is the annual profit?a.$280,000b.$50,000c.$150,000d.−$50,000e.$30,0002-56 If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year?a.12,000b.10,000c.16,000d.18,000e.5,143
Answer:
8000
$30,000
d.18,000
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
Fixed costs = $100,000 + $20,000 = $120,000
Variable costs are costs that vary with production
variable costs per unit = $15 + $10 = $25
Price = $40
Break even quantity = $120,000 / $40 - $25 = 8000
Profit = total revenue - total cost
Total revenue = price x quantity sold
$40 x 10,000 = $400,000
Total cost = fixed cost + total variable cost
total variable cost = variable cost per unit x quantity sold
$25 x 10,000 = $250,000
total cost = $250,000 + $120,000 = $370,000
Profit = $400,000 - $370,000 = $30,000
C.
Price = $35
quantity = x
profit = $60,000
$60,000 = $35x - ($120,000 + $25x)
solving for x
$180,000 = $10x
x = 18,000
Philip Morris expects the sales for his clothing company to be $670,000 next year. Philip notes that net assets (Assets − Liabilities) will remain unchanged. His clothing firm will enjoy a 9 percent return on total sales. He will start the year with $270,000 in the bank. What will Philip's ending cash balance be?
Answer:
the ending cash balance is $330,300
Explanation:
The computation of the ending cash balance is shown below:
Ending cash balance = Opening cash balance + Profit
= $270,000 + (9% × $670,000)
= $270,000 + $60,300
= $330,300
We simply added the opening cash balance and the profit so that the ending cash balance could come
Hence, the ending cash balance is $330,300
Alice, Amber, and Andi make and sell pottery. Alice is willing to sell a 5 inch pot for $25 , Amber is willing to sell a 5 inch pot for $28 , and Andi is willing to sell a 5 inch pot for $52 . If each of the ladies is able to sell one 5 inch pot for $55 , what is their combined producer surplus
Answer: $60
Explanation:
Producer surplus is simply the difference between the price a producer or seller is willing to accept for a particular good or service and how much the seller eventually sells the product at the market price.
In this scenario, the combined producer surplus will be the addition of the producer surplus of Alice, Amber and Andi. This will be:
= (55 - 25) + (55 - 28) + (55 - 52)
= 30 + 27 + 3
= $ 60
Allo Foundation, a tax-exempt organization, invested $200,000 in cost-saving equipment. The equipment has a five-year useful life with no salvage value. Allo estimates that the annual cash savings from this project will amount to $65,000. On investments of this type, Allo's required rate of return is 12%.The net present value of the project is closest to: Select one: a. $34,300 b. $36,400 c. $90,000 d. $125,000
Answer:
Net Present Value = $ 34,310.45
Explanation:
The Net present Value (NPV ) is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment
NPV = PV of Cash inflows - PV of cash outflow
The cash inflow is an annuity.
PV of annuity= A× 1 -(1+r)^(-n)/r
A- Annual cash flow ,- 65,000 r - discount rate - 12%, number of years- 5
Present Value of cash inflow =65,000 × (1- (1.12)^(-5)/0.12 = 234,310.45
Initial cost = 200,000
Net Present Value = - 234,310.45 -200,000 = 34,310.45
Net Present Value = $ 34,310.45
Which of the following is an example of an equity investment?
(Select the best answer.)
A company bond
A company's stock
A government bond
A loan
Answer:
A company's stock
Explanation:
There are two main capital structure i.e. debt and the equity. The debt is the loan which is to be borrowed by the individual or a company in order to raise a capital. While the other one is equity in which it shows the ownership stake in the company also it involves the securities than should be traded in the stock markets
While going through the options given, the second option is correct as other options are the examples of debt and the same is not considered for an equity investment
A company is considering two designs for a machine in its manufacturing line. The first, called machine A, will cost $160000 in fixed costs and will cost $80 per unit in variable costs, for each unit it produces. The second, called B, will cost $270000 in fixed costs and will cost $2 per unit in variable costs, for each unit it produces. At what volume of production will the two machines cost the same
Answer:
The indifference point is 1,410 units
Explanation:
Giving the following information:
Machine A:
Fixed costs= $160,000
Unitary variable cost= $80
Machine B:
Fixed costs= $270,000
Unitary variable cost= $2
First, we need to structure the total cost formula for each machine:
Machine A= 160,000 + 80x
Machine B= 270,000 + 2x
x= number of units
Now, we equal both formulas and isolate x:
160,000 + 80x = 270,000 + 2x
78x = 110,000
x= 110,000/78
x= 1,410 units
The indifference point is 1,410 units
Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.
Answer: False
Explanation:
Ethics are the moral principles which govern the behavior of a person. Ethics help us to know what is right or what is wrong.
Ethics Training program are done in order to enable workers to be able to identify and also deal with the ethical problems that they may face.
Therefore, the statement that "Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior" is false.
Why does insurance often provide "peace of mind"? O People know their insurance coverage will help prevent accidents and damage O People trust that they will make a profit if they pay insurance premiums. O People are not concerned about their health if they can pay for doctor's visits. 0 People are less worried when they know they have protection from risk.
Answer: D.) People are less worried when they know they have protection from risk.
Explanation:
The reason why insurance provided peace of mind is because people are less worried when they know they have protection from risk.
What is insurance?Insurance is when a third-party (the insurer) promises to idenmify another party (the insured) for losses they might suffer in the future in exchange for agreed upon payments.
For example, a person might insure his car against theif. Thi makes the inusred less worried about her car getting stolen.
To learn more about insurance, please check: https://brainly.com/question/1400638
Apple Tree Enterprises allocated overhead based on direct material cost and has a predetermined overhead rate of 160%. During the current period, direct labor cost is $67,000 and direct materials cost is $73,000. In the current period, determine the amount of overhead to be applied by Apple Tree Enterprises.
Answer:
Allocated MOH= $116,800
Explanation:
Giving the following information:
predetermined overhead rate= 160% of direct material
Direct materials= $73,000
To calculate the allocated overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.6*73,000
Allocated MOH= $116,800
4. Firm E must choose between two alternative transactions. Transaction 1 requires a cash outlay of $9,000; this expense would be non-deductible in the computation of the firm’s taxable income. Transaction 2 requires a cash outlay of $13,500, all of which would be a deductible expense. Determine which transaction has the lesser after-tax cost, assuming: a) Firm E’s marginal tax rate is 20 percent. b) Firm E’s marginal tax rate is 40 percent.
Answer:
a. Transaction 1
It is not deductible so the Taxable income is $9,000
Transaction 2
It is deductible, taxable income would be;
= 13,500 * ( 1 - Tax)
= 13,500 * ( 1 - 20%)
= $10,800
b. Transaction 1
It is not deductible so the Taxable income is $9,000
Transaction 2
It is deductible, taxable income would be;
= 13,500 * ( 1 - Tax)
= 13,500 * ( 1 - 40%)
= $8,100
Why is a facility location so important to manufacturers
In October 2014, Anheuser Busch InBev (AB InBev) acquired 100 percent of the common stock of SABMiller Group by paying $103,136 million in total consideration. On the acquisition date, the total fair value assigned to tangible and intangible assets acquired (excluding goodwill) was $61,896 million, while the total fair value assigned to liabilities assumed was $31,165 million. What is the value of goodwill recognized in AB InBev's consolidated financial statements as a result of the SABMiller Group acquisition?
Answer:
the value of goodwill recognized in AB InBev's consolidated financial statements is $70,405.
Explanation:
Goodwill is the excess of the Purchase consideration over the Fair Value of the Net assets taken over.
Calculation of Goodwill
Purchase Consideration $103,136
Less Fair Value of Net Assets taken over :
Fair Value of Assets $61,896
Fair Value of Liabilities ($31,165) ($30,731)
Goodwill $70,405
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,200; cost of goods sold, $1,440; selling expense, $215; general and administrative expense, $205; interest expense, $45; and gain on sale of investments, $85. Income tax expense has not yet been recorded. The income tax rate is 25%. Assume the company’s accountant prepared a multiple-step income statement. a. What amount would appear in that statement for operating income? b. What amount would appear in that statement for nonoperating income?
Answer:
A. $340 million
B. $40 million
Explanation:
A. Calculation for the amount that would appear in that statement for operating income
Sales revenue $2,200
Less: Cost of goods sold ($1,440)
Selling expense ($215)
General and administrative expense ($205)
Operating income $340 million
Therefore the amount that would appear in that statement for operating income will be $340 million
B. Calculation for the amount that would appear in that statement for non operating income
Interest expense $45
Less Gain on sale of investments $85
Non-operating income $40 million
Therefore the amount that would appear in that statement for nonoperating income will be $40 million
house alarm system when he moved to his new home in Seattle. For security purposes, he has all of his mail, including his alarm system bill, mailed to his local UPS store. Although the alarm system is activated and the company is aware of its physical address, Richardson receives repeated offers mailed to his physical address, imploring him to protect his house with the system he currently uses. What do you think the problem might be with that company's database
Answer:
it appears there's no database differentiation
Explanation:
Remember, we are told Richardson had already set up his house alarm system when he moved to his new home in Seattle, meaning he had subscribed to the service.
However, because the company's database does not differentiate customers who had activated their alarm system and set their billing to be sent to their local UPS store, it has caused Richardson security concern to still see repeated offers mailed to his physical address.
PLEASE HELP ASAP, I NEED TO DO THIS BUT DONT KNOW HOW TO. Describe how free markets solve the problem of coordination. Why do command economies struggle with this problem?
Flannigan Company manufactures and sells a single product that sells for $320 per unit; variable costs are $176. Annual fixed costs are $927,000. Current sales volume is $4,260,000. Flannigan Company management targets an annual pre-tax income of $1,185,000. Compute the dollar sales to earn the target pre-tax net income.
Answer:
Break-even point (dollars)= $4,693,333.33
Explanation:
Giving the following information:
Selling price= $320 per unit
Unitary variable costs= $176
Annual fixed costs= $927,000
Desired profit= $1,185,000
To calculate the sales in dollars required, we need to use the break-even point in dollars formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (927,000 + 1,185,000) / [(320-176) / 320]
Break-even point (dollars)= 2,112,000 / 0.45
Break-even point (dollars)= $4,693,333.33
Which of the following is NOT considered a step in activity-based costing?
A. Trace or allocate overhead costs to activity cost pools.
B. Identify and classify the major activities involved in the manufacture of specific products.
C. Identify a single overhead rate as the predetermined overhead rate.
. The overhead traced or allocated to the activity cost pools is assigned to products using cost drivers.
Answer: C. Identify a single overhead rate as the predetermined overhead rate.
Explanation:
Activity based costing works by assigning indirect and overhead costs to the activities that caused the costs to be incurred and then assigning those activities to the products those activities helped produce such that indirect and overhead costing is more accurate.
The steps involved include, tracing and allocating overhead costs to activity coat pools, identifying and classifying the major activities involved in the manufacture of specific products, and assigning overhead costs to products based on cost drivers.
It does not include identifying a single overhead rate as the predetermined overhead rate. This is a step is in Standard Costing.
"Consider a C corporation. The corporation earns $13 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 0% of its earnings to its shareholders as a dividend. The corporate tax rate is 42%, the tax rate on dividend income is 27%, and the personal income tax rate is set at 20%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid?"
Answer:
$1.41144
Explanation:
Assuming that distribution of its earning to its shareholder is 30% as against the 0% which is likely a mistake because the tax rate on dividend income of 27% is also given in the question
Earning before tax $13
Less: Corporation tax $5.46
($13 * 42%)
Earnings after tax $7.54
Dividend distribution = $7.54 * 30% = $2.262
After tax dividend = $2.262 * (1-0.27) = $2.262 * 0.78 = $1.7643
Shareholder earnings after Income tax = $1.7643 * (1 - 0.20) = $1.7643 * 0.80 = $1.41144
Therefore, the Shareholder earnings from the Corporation assuming the distribution of its earning to its shareholder is 30% is $1.41144
A scatter graph is used to test the assumption that the relationship between cost and activity level is ________. A. curvilinear B. cyclical C. unpredictable D. linear
Answer:
Option D (linear) is the right approach.
Explanation:
The scatter graph seems to be a graphic method to determine the relationship regarding expense and degree of operation. It could be used to evaluate the expense behavior of adjusting this same degree of operation. It is being used to verify the system suitability or linearity statement that is true.Some other decisions taken are not relevant to the situation in question. Although it is indeed the best option.
Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Assume you are the District Manager of a grocery chain which sells everything like Ralphs or Albertsons. What will you put on sale in your district during the Valentine's Day week
Answer:
The manager of the grocery chain should put two types of products:
1) products that are staple in Valentine's Day, because they are very likely to be sold in large numers.
2) products that have low price elasticity, or that are relatively inelastic, because these products will be sold in important quantities even if theirprices are moderately increased, bringing more profit to the firm.