The incremental contribution margin per container from further processing the honey into candies is $0.98.
The incremental contribution margin per container will be calculated thus:
= $4.40 - $0.95 - $4.4 × 5% - 3 × 3 / 4
= $0.98
On the other hand, the minimum number of containers of candy sold each month will be:
=($2,000 + $3,880) / $0.98
= 6,000 containers
Therefore, the minimum number of containers of candy that must be sold each month is 6000.
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Final answer:
To continue producing honey drop candies profitably, the Heather Honey Company needs an incremental contribution margin of $1.20 per container and must sell at least 8,467 containers monthly to cover fixed and variable costs.
Explanation:
The financial viability of continuing to produce honey drop candies in the face of competition, considering the incremental contribution margin per container and the minimum number of containers that must be sold to justify production. First, to calculate the incremental contribution margin per container of candy, we consider the selling price of the candies ($4.40) minus the cost of honey ($3.00 × 0.75 = $2.25) and the total variable manufacturing costs ($0.95) linked to the production of candies. This results in an incremental contribution margin of $1.20 per container. To determine the break-even point for candy production, considering both fixed and variable costs, we include the fixed manufacturing overhead ($4,280), the salary of the master candy maker ($3,880), and the salesperson's fixed compensation ($2,000). Knowing the fixed costs ($10,160) and the incremental contribution margin per container ($1.20), the Heather Honey Company must sell a minimum of 8,467 containers per month (rounded up from 8466.6667) to cover these costs and justify the continued processing of honey into candies.
Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $46.Required:A) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,500 copies?For subtractive or negative numbers use a minus sign.B) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur?(i) Breakeven appears in the interval of 3,600 to 3,800 copies.(ii) Breakeven appears in the interval of 4,000 to 4,200 copies.(iii) Breakeven appears in the interval of 4,200 to 4,400 copies.(iv) Breakeven appears in the interval of 4,400 to 4,600 copies.
Answer:
(a). Loss = $20,000
(b). Breakeven appears in the interval of 4,000 to 4,200 copies.
Explanation:
According to the scenario, computation of the given data are as follow:-
a). Sales = sale units × selling price per unit
= 3,500 × $46 = $161,000
variable cost = sale units × variable cost per unit
= 3,500 × $6 = $21,000
contribution = sales - variable cost
= $161,000 - $21,000 = $140,000
Net income = contribution - fixed cost
= $140,000 - $160,000 = -$20,000 (Loss)
(b). The attachment is attached below:
According to the analysis, (ii) breakeven appears in the interval of 4,000 to 4,200 copies.
To calculate the profit/loss for a given demand, use the formula: Profit = Revenue - Cost. The break-even point occurs where profit goes from negative to positive.
Explanation:To calculate the profit/loss for a given demand, you can use the formula: Profit = Revenue - Cost. The revenue can be calculated by multiplying the demand (3,500 copies) by the selling price ($46). The cost can be calculated by adding the fixed costs ($160,000) to the variable costs (demand * $6). In this case, the profit can be calculated as: $46 * 3,500 - ($160,000 + (3,500 * $6)).
To test the sensitivity of profit to demand, you can use a data table in Excel. Vary the demand from 1,000 to 6,000 in increments of 200 and calculate the profit for each demand level. The break-even point occurs where the profit goes from negative to positive. Based on the data table, the break-even point appears to be in the interval of 4,000 to 4,200 copies.
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On its December 31, 2014, balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2015, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2015 budgeted balance sheet are:Group of answer choices$328,000; $74,000.$450,000; $98,400.$450,000; $104,000.$408,000; $104,000.$408,000; $98,400.
Answer:
$408,000; $98,400; $309,600
Explanation:
The solution of balances for equipment and accumulated depreciation is provided below:-
To reach at balances for equipment and accumulated depreciation we need to deduct the accumulated depreciation from cost of equipment
Particulars Cost of equipment Accumulated Net income
Depreciation
Equipment $370,000 $74,000 $296,000
($370,000 - $74,000)
Purchase of
equipment $80,000 $30,000 $50,000
($80,000 - $30,000)
Equipment
dispose off $42,000 $5,600 $36,400
($42,000 - $5,600)
Budgeted balance
of equipment $408,000 $98,400 $309,600
($408,000 - $98,400)
therefore as per the question the option is not available so, the right answer is $408,000; $98,400; $309,600.
Bearcat Construction begins operations in March and has the following transactions:
March 1 Issue common stock for $11,500.
March 5 Obtain $7,100 loan from the bank by signing a note.
March 10 Purchase construction equipment for $15,500 cash.
March 15 Purchase advertising for the current month for $1,100 cash.
March 22 Provide construction services for $16,100 on account.
March 27 Receive $11,100 cash on account from March 22 services.
March 28 Pay salaries for the current month of $4,100.
Required:
Record each transaction. The company uses the following accounts: Cash, Accounts Receivable, Equipment, Notes Payable, Common Stock, Service Revenue, Advertising Expense, and Salaries Expense. (If no entry is required for a transaction/event, enter "No Journal Entry Required" in the first account field.)
Answer:
March 1 Issue common stock for $11,500.
Debt Cash account $11,500
Credit Common stock $11,500
Being entries to record the receipt of cash from the issuance of stock
March 5 Obtain $7,100 loan from the bank by signing a note.
Debit Cash account $7,100
Credit Note payable $7,100
Being entries to record loan from bank
March 10 Purchase construction equipment for $15,500 cash.
Debit Fixed assets $15,500
Credit Cash account $15,500
Being entries to record the purchase of equipment
March 15 Purchase advertising for the current month for $1,100 cash.
Debit Advertising expense $1,100
Credit Cash account $1,100
Being entries to record advertising expense for the month
March 22 Provide construction services for $16,100 on account.
Debit Accounts receivable $16,100
Credit Service Revenue $16,100
Being entries to record the revenue from construction services
March 27 Receive $11,100 cash on account from March 22 services.
Debit Cash accounts $11,100
Credit Accounts receivable $11,100
Being entries to record cash collected
March 28 Pay salaries for the current month of $4,100.
Debit Salaries expense $4,100
Credit Cash account $4,100
Being entries to record salaries expense paid.
Explanation:
Assets are debited when there there is an increase. The same also applies to expense. Increase in liabilities, common stock and income are accounted for by posting a credit entry to the account affected.
When assets decrease, credit entries are posted to it. The same also applies to expense. while debits to liabilities, equity and income is for a decrease in the account.
Final answer:
Bearcat Construction's transactions are recorded using double-entry bookkeeping. Transactions affect various accounts named, such as Cash, Equipment, and Accounts Receivable. The transactions demonstrate the accrual basis of accounting, where transactions are recorded when they occur, not necessarily when cash is exchanged.
Explanation:
To record the transactions for Bearcat Construction's operations in March, the double-entry bookkeeping system is used, where each transaction affects at least two accounts. Here's a breakdown of each transaction and how it affects the company's accounts:
Issue common stock for $11,500: Debit Cash, Credit Common Stock.Obtain a $7,100 loan from the bank by signing a note: Debit Cash, Credit Notes Payable.Purchase construction equipment for $15,500 cash: Debit Equipment, Credit Cash.Purchase advertising for the current month for $1,100 cash: Debit Advertising Expense, Credit Cash.Provide construction services for $16,100 on account: Debit Accounts Receivable, Credit Service Revenue.Receive $11,100 cash on account from March 22 services: Debit Cash, Credit Accounts Receivable.Pay salaries for the current month of $4,100: Debit Salaries Expense, Credit Cash.In the referenced information, purchasing equipment on credit is illustrative of the accrual basis of accounting where Treehouse would Debit Equipment and Credit Accounts Payable upon receiving the equipment. The accrual basis records transactions when they occur, not when cash changes hands. This ensures that the financial statements provide a complete and accurate picture of the company's financial position.
Timko served on the board of trustees of a school. He recommended that the school purchase a building for a substantial sum of money, and to induce the trustees to vote for the purchase, he promised to help with the purchase and to pay at the end of five years the purchase price less the down payment. At the end of four years, Timko died. The school sued his estate, which defended on the ground that there was no consideration for the promise. Assuming the estate is right on its theory of defending the claim against the school, is there any other theory or action the school could assert against Timko's estate to enforce the promise made by Timko?
Answer:
PROMISSORY ESTOPPEL.
Explanation:
This question is all about a case with no signed contract binding the promise so, the estate is very right or correct in trying to prevent them from being charged for repayment or returning or compensation. But, victory is not yet over for the estate because the school can make use of what is called the PROMISSORY ESTOPPEL.
The PROMISSORY ESTOPPEL is being used by by court if their is no signed contract between the parties involved in the deal. The estoppel will then be used in order for the plaintiff (school) to be compensated a little bit.
Assuming the estate's claim was right, the doctrine that can be asserted against Timko's estate to fulfill the promise made is: Promissory Estoppel.
What is Promissory Estoppel?Promissory Estoppel is a doctrine that necessitates a party who made a promise to another party not to go back on his word if such promise was made with the intent of acting on it, and it is reasonable, clear and unambiguous.Thus, in this case involving the school and Timko's estate, assuming the estate's claim was right, the doctrine that can be asserted against Timko's estate to fulfill the promise made is: Promissory Estoppel.
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You are evaluating the following two investment opportunities: Project A: This project requires $2,000 upfront, and pays you $500 at the end of each of the first 2 years, and an additional lump-sum of $1200 at the end of year 3. Project B: This project requires $2,000 upfront, and pays you $600 at the end of each of the first 2 years, and an additional lump-sum of $1000 at the end of year 3. Which project has a smaller IRR, and which project is more attractive?
Answer:
The project A has a smaller IRR, and the project B is more attractive
Explanation:
Solution
Solve for Project A:
Now,
Let assume that the IRR be x
Hence,
The Present Value of Outflows of Cash Outflows= The Present Value of Inflows of Cash
Thus,
2000 =500/(1.0x) +500/ (1.0x)^2 +1200/(1.0x)^3
Or we say x= 4.223%
Therefore the IRR is 4.223%
For project B:
Let assume that the IRR be y.
Thus,
The Present Value of Outflow of Cash = The Present Value of Inflow of Cash
so,
2000 =600/(1.0y) + 600/ (1.0y)^2 + 1000/(1.0y)^3
Or we say, y= 4.498%
Therefore the IRR is 4.498%
Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $391,900 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,903. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $827 instead of a credit balance of $2,903, prepare the adjusting journal entry for bad debt expense.
Answer and Explanation:
According to the scenario, journal entry for the given data are as follows:
a). Journal entry to record bad-debt expense
Bad-debt expense A/c [($391,900 × 2÷100) - $2,903] Dr. $4,935
To Allowance for doubtful accounts A/c $4,935
(To record bad-debts expense)
b). Journal entry to record bad-debt expense
Bad-debt expense A/c [($391900×2÷100)+$827 ] Dr. $8,665
To Allowance for doubtful accounts A/c $8,665
(To record bad-debts expense)
Oriole Company uses the percentage-of-receivables basis to record bad debt expense. The adjusting journal entry to record bad debt expense can be calculated using the percentage-of-receivables basis and the account balance information provided. The adjusting journal entry changes when the allowance for doubtful accounts has a debit instead of credit balance.
Explanation:To record the bad debt expense for the year, we need to calculate the amount of the expense first. We are told that Oriole Company uses the percentage-of-receivables basis and concludes that 2% of accounts receivable will become uncollectible. Therefore, the bad debt expense can be calculated as 2% of $391,900, which equals $7,838.
The adjusting journal entry to record the bad debt expense would be:
Bad Debt Expense: 7838Allowance for Doubtful Accounts: 7838If the allowance for doubtful accounts had a debit balance of $827 instead of a credit balance of $2,903, the adjusting journal entry for bad debt expense would be:
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g Samco signed a 5-year note payable on January 1, 2018, of $ 475 comma 000. The note requires annual principal payments each December 31 of $ 95 comma 000 plus interest at 9%. The entry to record the annual payment on December 31, 2021, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.
Answer:
B. a debit to Interest Expense for $ 42 comma 750.
C. a credit to Cash of $ 137 comma 750.
Explanation:
Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.
As per given data
Principal Payment = $95,000
First Interest payment = $475,000 x 9% = $42,750
Total Payment = $95,000 + $42,750 = $137,750
Journal Entry for first payment
Dr. Interest Expense $42,750
Dr. Not Payable $95,000
Cr. Cash $137,750
b) IKEA is also very "IKEA-centric." For example, the IKEA store itself will be laid out as a maze that requires customers to walk through every department before they reach the checkout stations. This forced path can seem constraining to their customers who naturally are more free spirited than the IKEA management model. Can this spell trouble in the near future, or is the IKEA way a sustainable business model? Why?
Answer:
Explanation:
As long as IKEA is able to deliver value and differentiation via quality, cost, and new designs, then the IKEA way of putting people through the different departments before making checkouts, will not spell trouble.
Furthermore, the movement of people through the different departments will give consumers, exposure to other new products available and it will make them aware of the quality present in other goods. As a result, the consumer and the company will benefit from increased sales.
Here, IKEA has to assure that quality is to be maintained and movement through the different departments should not be high traffic and it will be convenient for people to easily move through to remain interested in visiting the IKEA stores on a regular basis.
Thus, it will be the right step to build a sustainable business model by IKEA.
A Canadian project has an initial cost of Can$1.8 million and is expected to produce cash inflows of Can$710,000 a year for 3 years after which time it will be worthless. The expected inflation rate in Canada is 4 percent while it is only 3 percent in the U.S. The applicable interest rate in Canada is 8 percent. The current spot rate is C$1 = $.88. What is the net present value of this project in Canadian dollars using the foreign currency approach?
a. Can$33,974.02
b. Can$32,790.05
c. Can$29,738.86
d. Can$28,721.40
e. Can$30,751.18
Fast Delivery is the world’s largest express transportation company. In addition to the world’s largest fleet of all-cargo aircraft, the company has more than 654 aircraft and 52,000 vehicles and trailers that pick up and deliver packages. Assume that Fast Delivery sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:
Delivery truck cost $ 42,000
Accumulated depreciation 26,800
Required:
1. Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. $15,200 cash
b. $16,500 cash
c. $14,000 cash
Answer and Explanation:
The journal entries are shown below:
a. Cash $15,200
Accumulate depreciation $26,800
To Delivery truck $42,000
(Being the disposal of the truck is recorded)
b. Cash $16,500
Accumulate depreciation $26,800
To Delivery truck $42,000
To Gain on sale $1,300
(Being the disposal of the truck is recorded)
c. Cash $14,000
Accumulate depreciation $26,800
loss on sale $1,200
To Delivery truck 42,000
(Being the disposal of the truck is recorded)
To record the disposal of a delivery truck, a journal entry is required. The journal entry includes debiting accumulated depreciation and cash, and crediting the truck's cost. Based on the given sales price, different journal entries can be prepared for disposal.
Explanation:When disposing of an asset, such as a delivery truck, a journal entry is needed to record the transaction. The journal entry includes debiting the accumulated depreciation account and the cash account for the amount received from the sale. The credit is made to the truck's cost account, which is reduced by the accumulated depreciation.
For a cash sale of $15,200, the journal entry would be:
Debit Accumulated Depreciation: 26,800Debit Cash: 15,200Credit Delivery Truck (Cost): 42,000For a cash sale of $16,500, the journal entry would be:
Debit Accumulated Depreciation: 26,800Debit Cash: 16,500Credit Delivery Truck (Cost): 42,000For a cash sale of $14,000, the journal entry would be:
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On July 1, 2018, Mason & Beech Services issued $ 44 comma 000 of 11% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?
Answer:
The total amount paid to bondholders is $2,420.
Explanation:
Bonds are long-term liability or debt, usually issued at face value, discount or premium.
The total amount paid to bondholders on December 31, 2018 will be the semiannual interest payments, calculated as follows: Face value of the bond x Period interest rate (semi-annual).
Total payment: $44,000 x 11% / 2 = $2,420
How has Uber become so popular among consumers so quickly? How robust is their operating model? Any weak links/vulnerability? Do you agree or disagree with Uber’s surge pricing policy? Is it unfair? Exploitive? Are there risks to Uber? Should it change? Do you agree with Uber’s aggressive business tactics? Is there a more diplomatic way? How well does Uber treat its drivers? What are their benefits vs. complaints? Why has Uber attracted so much media attention? What about its business model makes it compelling and polarizing? Why has Uber achieved such a high valuation? What are the pros and cons ?
Answer:
I think it is ok that u can just get an uber off the street without yelling taxi and having ur neighbor see u
Explanation:
Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. Sales (4,700 units) $ 206,800 Variable expenses 94,000 Contribution margin 112,800 Fixed expenses 45,400 Net operating income $ 67,400 If the company sells 4,800 units, its total contribution margin should be closest to:
Answer:
Total contribution margin= 115,200
Explanation:
Giving the following information:
Sales (4,700 units) $206,800
Variable expenses 94,000
First, we need to calculate the selling price and the unitary variable cost:
Selling price= 206,800/4,700= $44
Unitary varaible cost= 94,000/4,700= $20
Now, for 4,800 units:
Sales= (4,800*44)= 211,200
Total variable cost= (4,800*20)= (96,000)
Total contribution margin= 115,200
Iz, Lauren, Odd, and Ralph started a T‑shirt company. They can produce any number of T‑shirts at a cost of $2 per T‑shirt, both marginal and average. They are the only producers of T‑shirts. As monopolists, they charge $20 per T‑shirt and obtain total profits of $10,000 . Now assume there are creative differences and they split the company in two. Lauren and Ralph join together and compete against Iz and Odd. If they compete on quantity, each company would produce 50 T‑shirts and charge $12 a T‑shirt. For technical reasons, assume that the quantity demanded is greater than zero for all prices greater than $0. If, however, Ralph and Lauren compete directly against Iz and Odd in prices, the market price for T‑shirts will be $ And their profits will be $ In response to the price war, Iz and Odd decide to put an iguana on the chest of their T‑shirt. They convince the world that the iguana is necessary for coolness. This type of behavior is called Bertrand competition. product differentiation. Cournot competition. Herfindahl competition. What economic reason is likely to have caused Iz and Odd put an iguana on their T‑shirts? increase profits decrease costs get better customers receive a major fashion award gain notoriety
Answer:
Market price = $2, profit = $0
Product differentiation
Increase profit
Explanation:
The market price will be $2, since the two firms will compete against each other, then the ori e falls to the marginal cost of $2
Product differentiation refers to the distinction made in a market whereby mostly similar products are produced. The variation or distinction made by different producers is usually used to influence consumer decision. The inscription of iguana made on the chest of iz and odd's t-shirt brand is to differentiate its product from that of Ralph and Lauren.
The Economic reason which could have likely sparked iz and odd's decision to put Iguana on its t-shirt brand is to give consumers something a bit more different from their usual design, thereby enticing more customers and ultimately increase profit.
Final answer:
Iz and Odd likely added an iguana to their T-shirts in a strategy to increase profits through product differentiation, allowing them to charge a higher price than competitors even after splitting from a monopolistic firm and entering into competition.
Explanation:
When Iz and Odd decide to differentiate their T-shirts by adding an iguana, the primary economic reason behind such a decision is likely to increase profits. In markets where products become commoditized and competition is based on price, differentiation can create a perceived value that allows a firm to avoid price wars. As the monopolist firm originally produced T-shirts at $20 each with a profit of $10,000, the competition after the split forced the price to go down to $12 per T-shirt when they competed on quantity.
If Ralph and Lauren were to compete directly on price with Iz and Odd, the market price would go down even further, and profits would decrease for both firms due to the Bertrand competition model. However, by adding an iguana, Iz and Odd are attempting product differentiation, which can allow them to maintain a higher price point and retain or even increase profits by setting their product apart from the competition.
Megan Company uses job-order costing. At the end of the month, the following data was gathered: Job # Total Cost Complete? Sold? 803 $500 yes yes 804 200 yes no 805 900 no no 806 600 yes yes 807 400 no no 808 380 no no 809 600 yes no 810 680 yes yes 811 225 no no 812 390 no no Megan’s selling price is cost plus 40% for each of its products. What is the total in the work-in-process (WIP) account? Group of answer choices $1,700 $2,295 $1,895 $1,845 $1,170
Final answer:
The total work-in-process (WIP) account value is found by adding the costs of all the incomplete jobs. For Megan Company, the jobs that are incomplete add up to a WIP total of $2,295.
Explanation:
The total work-in-process (WIP) account value for Megan Company can be calculated by adding up the total costs of all the jobs that are incomplete. Looking at the data provided:
Job 805: $900 (not yet complete)Job 807: $400 (not yet complete)Job 808: $380 (not yet complete)Job 811: $225 (not yet complete)Job 812: $390 (not yet complete)Adding these costs gives us the total WIP value:
$900 + $400 + $380 + $225 + $390 = $2,295.
Therefore, the total in the work-in-process account for Megan Company is $2,295.
Stuart Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Stuart expects sales in January year 1 to total $260,000 and to increase 20 percent per month in February and March. All sales are on account. Stuart expects to collect 70 percent of accounts receivable in the month of sale, 21 percent in the month following the sale, and 9 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of year 1. Determine the amount of accounts receivable as of March 31, year 1.
Answer:
Explanation:
The preparation of sales budget for the first quarter of year
Sales budget for the first quarter
Jan Feb March
Sales $260,000 $312,000 $374,400
Working Note
For Feb Sales = $260,000 × (100 + 20%)
= $260,000 × 120%
= $312,000
For March Sales = $312,000 × 120%
= $374,400
The amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement is shown below:-
Jan Sales = $260,000
Feb Sales = $260,000 × (100 + 20%)
= $260,000 × 120%
= $312,000
March Sales = $312,000 × 120%
= $374,400
Total Sales = $260,000 + $312,000 + $374,400
= $946,400
The preparation of cash receipts schedule for the first quarter of year is shown below:-
Jan Feb March
Jan Sales collection $182,000 $54,600 $23,400
($260,000 × 70%) ($260,000 × 21%) ($260,000 × 9%)
Feb Sales collection $218,400 $65,520
($312,000 × 70%) ($312,000 × 21%)
March Sales collection $262,080
($374,400 × 70%)
Total cash collections $182,000 $273,000 $351,000
The amount of accounts receivable is given below:-
Receivables
Out of Feb Sales $28,080
($312,000 × 9%)
Out of March Sales $112,320
($374,400 × (21% + 9%))
Total receivables $140,400
You purchased 1,350 shares of Barrett Golf Corp. stock at a price of $36.23 per share. While you owned the stock, you received dividends totaling $.65 per share. Today, you sold your stock at a price of $40.18 per share. What was your total dollar return on the investment?
Answer:
$6210.00
Explanation:
The computation of total dollar return on the investment is shown below:-
Total Return on Shares = (Dividend + (Sale price - Purchase price)) × Number of Shares
= ($0.65 + $40.18 - $36.23) × 1,350
= $4.6 × 1,350
= $6210.00
Therefore for computing the total return on shares we simply applied the above formula.
Novak Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $911,500. At December 31, 2021, the raw materials to be purchased have a market value of $863,400. Prepare any necessary December 31, 2021 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Dr Unrealized Holding Loss—Income (Purchase Commitments)$48,100
Cr Estimated Liability on Purchase Commitments $48,100
Explanation:
Novak Company Journal entries
Dr Unrealized Holding Loss—Income (Purchase Commitments)$48,100
Cr Estimated Liability on Purchase Commitments $48,100
($911,500 – $863,400)
The Cowboy Saddle Company manufactures plastic saddles that are used in the assembly process of their Mr. Ed doll. The firm desires to control inventory levels so as to minimize the sum of holding and order costs. Annual demand is 4000 units, and the item costs $25 per unit. It costs the firm $15 to place an order. The firm estimates its yearly inventory carrying costs at 10%. The lead-time for the product is 5 working weeks. Assume that there are 50 weeks in the work year and 5 working days per week.
i) Using the data above, What will be the time between orders (in working days) if the Cowboy Saddle Company ordered 400 units each time?
ii) What will be the total annual order cost if the Cowboy Saddle Company ordered 400 units each time. Use the data above?
Answer:
time between orders 25 working days
yearly ordering cost: $150
Explanation:
The annual demand is 4,000 units if order size is 400 units there will be 10 orders per year
Given a year of 50 weeks: every 5 weeks an order will be placed.
As each week has 5 working days that would mean every 25 working days
Then, total order cost:
each order cost $15 to place as there are 10 order per year it will be $150 ordering cost.
On November 1, 2021, Blossom Company purchased Splish, Inc., 10-year, 10%, bonds with a face value of $900000, for $820000. An additional $34000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028. Blossom uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Blossom's 2021 income statement as a result of Blossom's available-for-sale investment in Splish was
A. $9850.
B. $12150.
C. $13000.
D. $11000.
Answer:
C. $13000
Explanation:
Face Value 900000
Interest Rate 10%
Half Yearly Interest Rate 5%
900000 × 5% = 45,000
Amortization = (900000 - 820000) * 2 months /80 months = 2,000
Accrued Interest = 34,000
Amount reported in Blossom 2021 Income Statement
= Total Interest + Amortization -Accrued Interest
45,000 + 2,000 - 34,000
= $13,000
Dena's Decorations is a South Carolina business that has a SUTA rate of 3.6% and an annual SUTA wage base of $14,000. The employee earnings for the past calendar year are: B. Gilfilan $22,180, P. Laubach $37,690, S. Loftin $15,320, M. Moravec $9,840. (Assume that all employees have exceeded the annual FUTA wage base of $7,000 per employee and that the FUTA rate is 0.6%.) What are the FUTA and SUTA tax liabilities for Dena's Decorations?
Answer:
FUTA = $168
SUTA = $1,866.24
Explanation:
As per the data given in the question,
FUTA
= $7,000 × 4 employees × 0.6% = $168
SUTA
Gilfin, Laubach and Loftin earning excess = $14,000
So, will take maximum $14,000 for each of them
Moravec is less than $14,000 therefore will take the actual amount
Earnings = ($14,000 × 3 × 3.6%) + ($9,840 × 3.6%)
=$1,866.24
When preparing the statement of cash flows using the indirect method, which statement is INCORRECT? A. Losses on the sale of longminusterm assets are subtracted from net income. B. Increases in current liabilities are added to net income. C. Depreciation expense is added to net income. D. Gains on the sale of longminusterm assets are subtracted from net income.
Answer:
The correct answer is Option A.
Explanation:
A. Losses on the sale of longminusterm assets are subtracted from net income - This is incorrect because on losses on sale of an asset are usually added to the net income to avoid double-counting of income. Under the investing section of the cash flows, the proceed received on disposal is recorded there as inflow, if the losses realized on the disposal are subtracted, there would be a double-counting because the losses had already reduced the net income before.
B. Increases in current liabilities are added to net income - This is an inflow of cash, so it is usually added back.
C. Depreciation expense is added to net income - The explanation under Option A above applies but only that depreciation is a non-cash item, which already reduced the net income and it has to be added back to reinstate the net income.
D. Gains on the sale of longminusterm assets are subtracted from net income - Explanation under Option A applies.
Explain the Charachteristics and the internal controlfeatures of an imprest fund.
An imprest fund has ______ balance at all times, which equals the sum of ______ accounts receivable cash in the bank cash in the fund deposits in transit plus the ______ check stubs credit memos total of the tickets that support payments from the fund. The internal control feature of an imprest fund is that it _______ clearly debits clearly identifies decreases increases the amount of money for which the fund custodian is responsible.
Answer:
the Same; cash in the fund; total of the tickets; clearly identifies.
Explanation:
Okay, let us first fill in the gap in the question above. Please note that the capitalized words are the missing words.
"An imprest fund has THE SAME balance at all times, which equals the sum of CASH IN THE FUND accounts receivable cash in the bank cash in the fund deposits in transit plus the TOTAL OF THE TICKETS check stubs credit memos total of the tickets that support payments from the fund. The internal control feature of an imprest fund is that it CLEARLY IDENTIFIES (decreases increases) the amount of money for which the fund custodian is responsible."
IMPREST FUND can simply be defined as the money that one can keep in order to be able to pay for little-little day-by-day expenses. IMPREST fund is one of the powerful tools that is been used in accounting. IMPREST fund is generally kept with a custodian.
Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 1,120 Service cost 90 Prior service cost 42 Interest cost(5.0%) 56 Benefits paid (80 ) Balance, December 31 $ 1,228 Plan Assets ($ in millions) Balance, January 1 $ 530 Actual return on plan assets 56 Contributions 2021 90 Benefits paid (80 ) Balance, December 31 $ 596 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2021. At the end of 2021, Lacy amended the pension formula creating a prior service cost of $42 million. Determine Lacy's pension expense for 2021.
Answer:
$93 Million
Explanation:
The computation of Lacy's pension expense is shown below:-
Service cost $90 Million
Interest cost $56 Million
Expected return on the plan assets $53 Million
$56 Million - (56 Million - 53 Million)
Amortization of prior service cost $0*
Amortization of net gain or net loss-AOCI $0
Pension Expense $93 Million
Therefore, the change was at the end of the year, so there will be no changes in amortization of prior service cost in 2021.
The total pension expense for Lacy Construction in 2021 is $132 million, which is calculated by adding the service cost ($90 million), Interest cost ($56 million), and prior service cost ($42 million), and subtracting the actual return on plan assets ($56 million).
Explanation:The pension expense for Lacy Construction in 2021 can be calculated by adding the service cost, interest cost, and the prior service cost because of the amendment of the pension formula, less the actual return on the plan assets. Therefore, Lacy's pension expense can be calculated as follows: Service cost ($90 million) plus Interest cost ($56 million) plus Prior service cost ($42 million) minus Actual return on plan assets ($56 million). Therefore, the total pension expense for Lacy Construction in 2021 is $132 million. For Lacy Construction, an increment in pension liabilities due to the Prior service cost was a significant aspect of their pension expense, and managing the Actual return on plan assets will also play a critical role in controlling these costs in the future.
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Pancor Corporation paid cash of $167,000 to acquire Sink Company’s net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Sink immediately before the business combination were: Pancor Corporation Sink Company Balance Sheet Item Book Value Book Value Fair Value Assets Cash $ 257,000 $ 16,000 $ 16,000 Accounts Receivable 149,000 34,000 34,000 Inventory 175,000 44,000 48,000 Patents 86,000 44,000 57,000 Buildings & Equipment 388,000 327,000 144,000 Less: Accumulated Depreciation (182,000 ) (192,000 ) Total Assets $ 873,000 $ 273,000 $ 299,000 Liabilities & Equities Accounts Payable $ 79,000 $ 63,000 $ 63,000 Notes Payable 139,000 127,000 127,000 Common Stock: $8 par value 181,000 $6 par value 12,000 Additional Paid-In Capital 141,000 7,000 Retained Earnings 333,000 64,000 Total Liabilities & Equities $ 873,000 $ 273,000 Required: a. Prepare the journal entry recorded by Pancor Corporation when it acquired Sink’s net assets.
Answer and Explanation:
As per the data given in the question,
Journal entry for Pancor Corporation -
Cash A/c Dr. $16,000
Account receivable A/c Dr. $34,000
Inventory A/c Dr. $48,000
Patents A/c Dr. $57,000
Building A/c Dr. $144,000
Goodwill A/c Dr. $299,000
To Account Payable $63,000
To Notes payable $127,000
To Purchase consideration A/c $167,000
(Being the acquired net assets is recorded)
We debited the all assets and credited the liabilities as it increased the assets and liabilities and the remaining balance is debited to goodwill
The journal entry recorded by Pancor Corporation when it acquired Sink's net assets involves debiting and crediting various accounts to reflect the fair value of assets, liabilities, and equity of Sink Company.
Explanation:The journal entry recorded by Pancor Corporation when it acquired Sink's net assets is as follows:
Debit: Sink Company's Assets (Fair Value)https://brainly.com/question/33762471
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A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 64,400 $ 16,200 Accounts receivable, net 27,800 34,400 Inventory 58,200 64,600 Prepaid expenses 3,600 2,900 Total current assets 154,000 118,100 Furniture 72,600 82,200 Accum. depreciation—Furniture (11,300 ) (6,200 ) Total assets $ 215,300 $ 194,100 Liabilities and Equity Accounts payable $ 10,100 $ 14,300 Wages payable 6,100 3,400 Income taxes payable 1,000 1,800 Total current liabilities 17,200 19,500 Notes payable (long-term) 20,700 47,800 Total liabilities 37,900 67,300 Equity Common stock, $5 par value 154,500 124,000 Retained earnings 22,900 2,800 Total liabilities and equity $ 215,300 $ 194,100 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $ 332,400 Cost of goods sold 213,900 Gross profit 118,500 Operating expenses Depreciation expense $ 25,600 Other expenses 60,700 86,300 Income before taxes 32,200 Income taxes expense 11,800 Net income $ 20,400 Furniture costing $56,600 is sold at its book value in 2017. Acquisitions of furniture total $47,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? rev: 02_19_2019_QC_CS-159605
Answer:
Cruz Inc.
Cash inflow from the sale of Furniture:
Difference in the accumulated depreciation account is transferred to Sale of Furniture:
Accumulated Depreciation- Furniture
Opening Balance - $6,200
Plus Depreciation Expense - $25,600
Less Credit Balance - $11,300
Balance transferred to sale of furniture = $20,500
Sales of Furniture Account
Debit: Furniture Account (book value) = $56,600
Credit: Accumulated Depreciation = $20,500
Credit: Cash inflow = $36,100
Explanation:
The cash inflow is the difference between the book value of the furniture sold and its attributable accumulated depreciation.
The attributable accumulated depreciation is the difference between opening accumulated depreciation and depreciation expenses less closing accumulated depreciation. This difference represents the amount of accumulated depreciation transferred out, as a result of the sale.
Final answer:
The cash inflow related to the sale of furniture by Cruz, Inc. is $56,600, which is the book value of the furniture that was sold in 2017. This is calculated using the historical cost and accumulated depreciation provided, considering that the sold furniture did not contribute to any gain or loss in the sale.
Explanation:
The question you asked pertains to the cash inflow from the sale of furniture as reported in the financial statements of Cruz, Inc. To calculate this cash inflow, we need to examine the details provided in the comparative balance sheet and the income statement, as well as the additional information given.
In the balance sheet, the accumulated depreciation on furniture increased by $5,100 from 2016 to 2017 ($11,300 - $6,200). This increase in accumulated depreciation suggests that some furniture was sold, as there is no depreciation expense necessary for new acquisitions in the current year, based on the information provided.
The income statement shows a depreciation expense of $25,600 for the year. Since we've been told that furniture with a historical cost of $56,600 was sold at its book value, we need to figure out this book value. The historical cost of the furniture is subtracted by the accumulated depreciation related to the furniture that was sold, which must be part of this year's depreciation expense, to find the book value.
The book value of the sold furniture could be calculated as follows: $56,600 (historical cost) - (total depreciation expense $25,600 - depreciation for new acquisitions $0) = $56,600 (since there is no additional depreciation for new acquisitions in this year, all depreciation expense is related to old furniture).
Since the furniture was sold at its book value and there was no loss or gain reported, it implies the cash inflow is equal to the book value of the furniture that was sold. Therefore, the cash inflow related to the sale of furniture is $56,600.
The total rate of return on an investment over a given period of time is calculated by ________. A. dividing the asset's cash distributions during the period, plus change in value, by its ending-of period investment value B. dividing the asset's cash distributions during the period, minus change in value, by its ending-of period investment value C. dividing the asset's cash distributions during the period, minus change in value, by its beginning-of period investment value D. dividing the asset's cash distributions during the period, plus change in value, by its beginning-of period investment value
Answer:
dividing the asset's cash distributions during the period, plus change in value, by its beginning-of period investment value
Explanation:
Rate of return of an investment is defined as the ratio of change of value or/and cash flows from an asset and it's initial cost of investment.
It measures the profit that a business owner gets from an asset in a given period of time.
Cash flows includes interest payments and dividends.
When rate of return is positive it results in profit but when it is negative the business is incurring a loss.
Usually rate of return is calculated within the period of one year, and is referred to as annual rate of return.
Assume that tomatoes are currently imported from abroad at a market price of $ .50 per tomato. Assume that a tariff of $ .25 is placed on imported tomatoes. Also assume that the supply and demand for tomatoes are normal supply and demand relationships. What will be the effect of the tariff on the price of tomatoes in the U.S. and to the price received by foreign exporters of tomatoes?
Answer:
Increases the price of tomatoes in the U.S.
Decrease the price received by foreign exporters of tomatoes.
Explanation:
Tariff refers to a tax or duty is charged on some imported goods. It is usually used to discourage the importation of the goods.
The effect of the tariff $0.25 will be an increase in the price of tomatoes in the U.S. However, it will lead to a decrease in the price received by foreign exporters of tomatoes.
The reason is that the supply and demand for tomatoes are normal supply and demand relationships which will make the foreign exporter to bear the higher burden of the tariff.
The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows:
Dish N' Dat Company
Product-Line Income Statement
For the Month Ended March 31
Bowls Plates Cups
Sales $71,000 $105,700 $31,300
Cost of goods sold 32,600 42,300 16,800
Gross profit $38,400 $63,400 $14,500
Selling and administrative expenses 27,400 42,800 16,700
Income from operations $11,000 $20,600 $(2,200)
Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses.
Dish N' Dat assumes that fixed costs would not be materially affected if the Cups line were discontinued.
Required:
a. Prepare a differential analysis dated March 31, 2014, to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero 0.
Answer:
It will generate a financial disadvantage for 44,065 dollar to discontinued the cup division. This division generates a positive contribution which, if discontinued will not help to absorp the common fixed cost fo the firm and move the burden entirely to Bowls Plates division making the profit to decrease.
Explanation:
[tex]\left[\begin{array}{cccc}&$Continued&$Discontinued&$Differential\\$sales&105700&0&(105700)\\$variable cost&-61635&0&61635\\$contribution&44065&0&(44065)\\$fixed cost&-23465&-23465&0\\$Result&20600&-23465&(44065)\\\end{array}\right][/tex]
Fixed cost:
42,300 x 15% + 42,800 x 40% = 23,465
Variable cost:
42,300 x (1 - 15%) + 42,800 x (1 - 40%) = 61,635
The differencial will be discontinued less continued column
If the result is positive there is a cost saving if discontinued
if negative there is a loss in contribution if discontinued
Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swifty incurs $7192800 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is
Answer:
37.00%
Explanation:
The computation of the weighted average contribution margin ratio is shown below:
Particulars Sporting Goods Sports Gear Total
Contribution Margin Ratio 30% 50%
Sales Mix - Weights 65% 35%
Weighted Contribution Margin 19.50% 17.50% 37.00%
We simply multiplied the contribution margin ratio with the sales mix weighted so that the weighted contribution margin ratio could come