Answer:
Summer holiday
no coldness
beach time
camping
travel
Answer: Christmas
Explanation:
I think this holiday in particular brings everyone together. Huge festivities are all around and about as well.
Ruiz Co. provides the following sales forecast for the next four months:
April May June July
Sales (units) 560 640 590 680
The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 168 units. Assume July's budgeted production is 590 units. In addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month’s production needs. Beginning raw materials inventory for April was 1,051 pounds. Assume direct materials cost $4 per pound.
Required:
Prepare a direct materials budget for April, May, and June.
Answer:
Instructions are below.
Explanation:
We need to calculate the production required for each month:
Production= sales + desired ending inventory - beginning inventory
April= 560 + (640*0.3) - 168= 584
May= 640 + (590*0.3) - 192= 625
June= 590 + 680*0.3 - 177= 617
Now, we can prepare the direct material budget:
Purchases= production + desired ending inventory - beginning inventory
April (pounds):
Production= 584*6= 3,504
Desired ending inventory= (625*6)*0.3= 1,125
Beginning inventory= (1,051)
Total pounds= 3,578
Total cost= 3,578*4= $14,312
May (pounds):
Production= 625*6= 3,750
Desired ending inventory= (617*6)*0.3= 1,110.6
Beginning inventory= (1,125)
Total pounds= 3,735.6
Total cost= 3,735.6*4= $14,942.4
June:
Production= 617*6= 3,702
Desired ending inventory= (590*6)*0.3= 1,062
Beginning inventory= (1,110.6)
Total pounds= 3,653.4
Total cost= 3,653.4*4= $14,613.6
According to the table, which religion had the most active congregations in New Jersey in 1765?
New Jersey – Active Congregations (1765)
Answer:
Presbyterian
39
Dutch Reformed
Explanation:
just did it on edge ooga booga
Answer:
According to the table, which religion had the most active congregations in New Jersey in 1765?
✔ Presbyterian
How many Quaker congregations were there in 1765?
✔39
There were the same number of Church of England congregations in New Jersey as
✔Dutch Reformed congregations.
Explanation:
Find the future value of an annuity with monthly deposits of $150, made over a period of 10 years, with 5% interest compounded monthly g
Answer:
Explanation:
Future value of an annuity FVA = ?
annuity = 150 .
period = 10 years
= 10 x 12 = 120 months
rate of interest 5%
monthly interest = 5 / 12 = .41667
FVA = 150 [ ( 1.0041667)¹²⁰] / .0041667
X = 150 [ ( 1.0041667)¹²⁰] / .0041667
2.778 x 10⁻⁵ X = ( 1.0041667)¹²⁰
- 5 + log 2.778 + log X = 120 log 1.0041667
- 4.55627 + log X = .2167
log X = 4.77297
X = $59288.43 .
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $120,000 are payable at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of S1, FVAD of $1 and PVAD of (Use appropriate factor(s) from the tables provided.)
Situation
1 2 3 4
Lease term (years) 9 9 10 10
Lessor's and lessee's interest rate 11$ 13$ 12% 12%
Residual value:
Estimated fair value 0 $54,000 $8,400 $54,000
Guaranteed by lessee 0 0 $8/,400 $64,000
Determine the following amounts at the beginning of the lease Round your intermediate and final answer to the nearest whole dollar amount. Answer the missing part.
Situation
1 2 3 4
A. The lessor's:
1. Lease payments $1,080,000 $1,080,000 $1,200,000 ________
2. Gross investment in the leas $1,080,000 $134,000,000 $1,208,400 1,264,000
3. Net Investment in the lease 737,534 713,828 762,095 779,996
B. The lessee's
4. Lease payments 1,080,000 1,080,000 1,200,000 ________
5. Right-of-use asset 737,534 713,828 759,390 ________
6. Lease payable 737,534 713,828 759,390 ________
Answer:
A) $1264000
B) 4) $1264000
5) $77996
6) $77996
Explanation:
Answer to The missing parts
A) under the Lessor's category
The lease payment for the 4th condition is missing and is calculated as
= ( $120000 * number of payments ) + residual value guaranteed by lessee
=( $120000 * 10 ) + $64000
= 1200000 + 64000 = $1264000
B) Under Lessee's category
4)minimum lease payment for the 4th condition
= ( $120000 * number of payments ) + residual value guaranteed by lessee
=( $120000 * 10 ) + $64000
= 1200000 + 64000 = $1264000
5) Right of use asset for the 4th condition ( this should not exceed fair value = ( $120000 * 6.32825 ) + ( $64000 * 0.32197 )
= $77996
6) Lease payable for the 4th condition ( this should not exceed fair value )
= ( $120000 * 6.32825 ) + ( $64000 * 0.32197 )
= $77996
A 6.75 percent coupon bond with 13 years left to maturity can be called in two years. The call premium is one year of coupon payments. It is offered for sale at $919.75. What is the yield to call of the bond? Assume interest payments are paid semi-annually and par value is $1,000.
Answer:
YTC = 14.23%
Explanation:
the yield to call formula is:
YTC = {coupon payment + [(call price - market price) / n]} / [(call price + market price) / 2]
YTC = {$33.75 + [($1,067.50 - $919.75) / 4]} / [($1,067.50 + $919.75) / 2]
YTC = ($33.75 + $36.94) / $993.63 = 0.0711 x 2 (semiannual coupon) = 0.1423 = 14.23%
Paige is 64 years old and would like to retire from her job at a large accounting firm. She, however, is concerned about health insurance. She would not be eligible for Medicare benefits until age 65, and due to some serious health conditions, she would not be able to obtain insurance in the private market. She has good health insurance at the accounting firm and is considering putting off her retirement so that she can keep it.
Which of the following would likely enable Paige to keep her insurance with the accounting firm until she is eligible for Medicare?A) The Health Insurance Portability and Accountability ActB) The Consolidated Omnibus Budget Reconciliation ActC) The Employee Security ActD) The Insurance Protection Act
Answer:
B)The Consolidated Omnibus Budget Reconciliation Act
Explanation:
We are informed about Paige, a 64 years old who would like to retire from her job at a large accounting firm. And she is concerned about health insurance. She would not be eligible for Medicare benefits until age 65, and due to some serious health conditions, she would not be able to obtain insurance in the private market. She has good health insurance at the accounting firm and is considering putting off her retirement so that she can keep it.
In case Paige want to keep her insurance with the accounting firm until she is eligible for Medicare, The law that would likely enable is the Consolidated Omnibus Budget Reconciliation Act.
The Consolidated Omnibus Budget Reconciliation Act by U.S Congress was signed into law in 1985 by President Ronald Reagan.It enables employee of an organization to enjoy the benefits that comes with their Heath insurance even after they are not working in the organization again.
Statement of Cash Flows
Colorado Corporation was organized at the beginning of the year, with the investment of $251,500 in cash by its stockholders. The company immediately purchased an office building for $304,900, paying $212,700 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,500 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $66,500 for inventory, $20,500 in salaries and wages, and another $4,000 in taxes. Colorado paid $6,200 in cash dividends.
Required
1. Prepare a statement of cash flows for the years
2. What does this statement tell you that an income statement does not?
Answer:
Required 1 ;
Statement of Cash Flows
Cash flow from Operating Activities
Cash Receipts from Customers $93,970
Cash Payments to Suppliers and Employees ($87,000)
Cash Generated from Operations $6,970
Income tax paid ($4,000)
Net Cash from Operating Activities $2,970
Cash flow from Investing Activities
Purchase of Office Building ($212,700)
Net Cash from Investing Activities ($212,700)
Cash flow from Financing Activities
Capital Investment $251,500
Promissory note (Five Year) $60,500
Dividends Paid ($6,200)
Net Cash from Financing Activities $305,800
Beginning Cash and Cash Equivalent $0
Movement during the year $96,070
Ending Cash and Cash Equivalent $96,070
Required 2 ;
It shows the liquidity position of the Company, which proves its credit worthiness.
Explanation:
I have prepared the Cash Flow Statement using the Direct Method in terms of IAS 7.
Cash Payments to Suppliers and Employees = ($66,500 + $20,500
= $87,000
The Saunders Investment Bank has the following financing outstanding.
Debt: 60,000 bonds with a coupon rate of 5.1 percent and a current price quote of 106.1; the bonds have 15 years to maturity and a par value of $1,000. 18,900 zero coupon bonds with a price quote of 21.6, 27 years until maturity, and a par value of $10,000. Both bonds have semiannual compounding.
Preferred stock: 155,000 shares of 2.9 percent preferred stock with a current price of $84 and a par value of $100.
Common stock: 2,300,000 shares of common stock; the current price is $92 and the beta of the stock is 1.20.
Market: The corporate tax rate is 25 percent, the market risk premium is 6.9 percent, and the risk-free rate is 3.5 percent.
Required:
What is the WACC for the company?
Answer:
11,73 %
Explanation:
WACC = Ke × (E/V) + Kd × (D/V) + Kp × (E/V)
Ke = Cost of Equity
= Return on Risk Free Security + Beta × Risk Premium
= 3.5 % + 1.20 × 6.9 %
= 11.78 %
E/V = Weight of Equity
= (2,300,000 × $92) ÷ (2,300,000 × $92 + 60,000 × $106.10 + 18,900 × $21.60 + 155,000 × $84)
= 0.91
Kd = Cost of Debt
Debt : 60,000 bonds
Pv = ($106.10)
Pmt = (5.10% × $1,000) ÷ 2 = $25.50
n = 15 × 2 = 30
Fv = $1,000
P/yr = 2
i = ?
Pre-tax cost = 48.66 %
After tax cost = 0.75 × 48.66 %
= 36.50%
DV = Weight of Debt
= (60,000 × $106.10) ÷ (2,300,000 × $92 + 60,000 × $106.10 + 18,900 × $21.60 + 155,000 × $84)
= 0.03
Debt : 18,900 zero coupon bonds
Pv = ($21.60)
Pmt = $0
n = 27 × 2 = 54
Fv = $10,000
P/yr = 2
i = ?
Pre-tax cost = 24,07 %
After tax cost = 0.75 × 24,07 %
= 18.05%
DV = Weight of Debt
= (18,900 × $21.60) ÷ (2,300,000 × $92 + 60,000 × $106.10 + 18,900 × $21.60 + 155,000 × $84)
= 0.002
Kp = Cost of Preference Share
Market Rate = (Return × Par Value) ÷ Current Price
= (2.90 % × $100) ÷ $84
= 0.03 %
P/V = Weight of Preference Shares
= (155,000 × $84) ÷ (2,300,000 × $92 + 60,000 × $106.10 + 18,900 × $21.60 + 155,000 × $84)
= 0.06
WACC = 11.78 % × 0.91 + 36.50% × 0.03 + 18.05% × 0.002 + 0.03 % × 0.06
= 11,73 %
Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows (the amounts are rounded to thousands of dollars to simplify):
Account Titles Debit Credit
Cash $ 6
Accounts Receivable 2
Supplies 2
Equipment 10
Accumulated Depreciation $3
Software 8
Accumulated Amortization 3
Accounts Payable 6
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Taxes Payable 0
Deferred Revenue 0
Common Stock 13
Retained Earnings 3
Service Revenue 0
Depreciation Expense 0
Amortization Expense 0
Salaries and Wages Expense 0
Supplies Expense 0
Interest Expense 0
Income Tax Expense 0
Totals $28 $28
Transactions during 2018 (summarized in thousands of dollars) follow:
Borrowed $13 cash on July 1, 2018, signing a six-month note payable.
Purchased equipment for $16 cash on July 2, 2018.
Issued additional shares of common stock for $6 on July 3.
Purchased software on July 4, $2 cash.
Purchased supplies on July 5 on account for future use, $8.
Recorded revenues on December 6 of $47, including $9 on credit and $38 received in cash.
Recognized salaries and wages expense on December 7 of $21; paid in cash.
Collected accounts receivable on December 8, $8.
Paid accounts payable on December 9, $9.
Received a $2 cash deposit on December 10 from a hospital for a contract to start January 5, 2019.
Data for adjusting journal entries on December 31:
Amortization for 2018, $3.
Supplies of $2 were counted on December 31, 2018.
Depreciation for 2018, $3.
Accrued interest of $1 on notes payable.
Salaries and wages incurred but not yet paid or recorded, $4.
Income tax expense for 2018 was $3 and will be paid in 2019.
Record journal entries for transactions (a) through (j).
Cash 13
Notes-payable (short term) 13
Equipment 16
Cash 16
Cash 6
Common Stock 6
Software 2
Cash 2
Supplies 8
Accounts Payable 8
Accounts Receivable 9
Cash 38
Service Revenue 47
Salaries and Wages Expense 21
Cash 21
Cash 8
Accounts Receivable 8
Accounts Payable 9
Cash 9
Cash 2
Deferred Revenue 2
Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry.
Prepare an unadjusted trial balance and a trial balance.
Question attached
Answer and Explanation:
Find attached
York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
2015 $20,000
2016 28,000
2017 200,000
2018 350,000
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined.
par value dividend dividend number of preferred annual
per preffered rate per preffered preffered divedends preffered
share share shares dividend
total cash paid to paid to dividend in
dividend preferred common arrears at
paid year-end
2015 20000 20000
2016 28000 28000
2017 200000
2018 350000 30000 320000
totals 598000 78000 320000
Answer:
total non-cumulative preferred stock dividends per year = 80,000 x 7.5% x $5 = $30,000
since the bonds are non-cumulative, if the dividends are not paid during one year, they are basically lost since they will not be paid in the future.
year
2015: $20,000 distributed to preferred stockholders
$0.25 per preferred stock$0 to common stockholders2016: $28,000 distributed to preferred stockholders
$0.35 per preferred stock$0 to common stockholders2017: $30,000 distributed to preferred stockholders, $170,000 distributed to common stockholders
$0.375 per preferred stock$0.85 per common stock2018: $30,000 distributed to preferred stockholders, $320,000 distributed to common stockholders
$0.375 per preferred stock$1.60 per common stock
Dividends paid during the 4 year period:
Preferred stockholders received $108,000 in total
$1.35 per preferred stockCommon stockholders received $490,000 in total
$2.45 per common stockThe total dividend for the preferred stockholders is $108000 while the value for the common stock holders will be $490000.
The value of the dividends paid during the four year period for the preferred stockholders will be:
= $20000 + $28000 + $30000 + $30000
= $108000
The value of the dividends paid during the four year period for the common stockholders will be:
= $170000 + $320000
= $490000
The dividend per preferred stock will be:
= $0.25 + $0.35 + $0.375 + $0.375
= $1.35
The dividend per common stock will be:
= $0.85 + $1.60
= $2.45
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The concept of demand is best described as:_____.
a. the quantity of a good or a service that people are willing and able to purchase at different possible prices.
b. the total satisfaction that consuming a good provides people at different prices.
c. the additional satisfaction derived from a quantity of goods and services obtained when income increases.
d. the quantity of a good or a service that people will offer for sale at different possible prices.
e. the quantity of a good or service that consumers will substitute when the price of a good changes.
The basic proposition of the law of demand is that:_____.
a. higher prices cause buyers to demand more.
b. buyers demand lower prices.
c. higher prices cause less demand.
d. as the price of a good decreases, buyers are willing and able to purchase less.
e. as the price of a good increases, buyers are willing and able to purchase less.
In a market economy, there is relationship between the price of a good and the amount of a good that buyers are willing and able to purchase.
Answer:
Explanation: The concept of demand usually deals with the consumers yearning for goods and services and the factors which determines the purchasing decision of consumers and the amount being purchased. Quantity and price are two associated variables which can be used to examine consumer behavior towards a certain product. Hence, demand for a product often refers to the quantity of product purchased or demanded by consumers based on the price of the product.
The demand proposition is simply of the notion that the number of quantity demanded for a certain product falls as the price of such product inversa and vice versa. The demand for a product decreases as its price begins to rise, leading consumers to look for substitute products which cost less.
Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31.
Answer:
The question is incomplete, below is the completed question:
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows:
Oct. 1 Inventory 200 units at $30
7 Sale 160 units
15 Purchase 180 units at $33
24 Sale 150 units
Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the inventory on October 31. a. Cost of goods sold on October 24 b. Inventory on October 31
Answer:
a) cost of goods sold on October 24 = $4,830
b) Inventory on October 31 = 70 units
Explanation:
a) First-in-first-out (FIFO) inventory system is a type of inventory accounting system where the oldest inventory goods are recorded as sold first befor the newer ones.
on October 24, 150 units of goods were sold
Let us calculate the amount of inventory remaining from the old stock after the first sales:
On October 1, the inventory = 200 units at $30/unit
October 7: sales = 160 units
Units remaining = 200 - 160 = 40 units at $30/unit
on October 15, 180 units were purchased at $33
Now, the sales on October 24 = 150 units.
out of these 150 units, using FIFO, the old stock of 40 units at $30 (as calculated above) will be sold first, then the remaining 110 units will be sold from the October 15 purchases.
Therefore total cost of goods sold:
40units at $30 = 40 × 30 = $1200
110 units at $33 = 110 × 33 = $3630
Total cost of goods sold = 3630 + 1200 = $4,830
b) beginning inventory = 200 units
Sale in Oct. 7 = 160 units
After the sales on Oct. 7, the inventory = 200 - 160 = 40 units
A purchase of 180 units was made on Oct. 15. Therefore, total number of units available on Oct. 15 = 180 + 40 = 220 units
Finally, 150 units were sold on Oct. 24, Therefore the inventory on Oct. 31
= 220 - 150 = 70 units
Assume that in January 2017, the average house price in a particular area was $300,400. In January 2001, the average price was $207,300. What was the annual increase in selling price
Answer:
r = 0.023455 or 2.3455% rounded off to 2.35%
Explanation:
We are given the future value and the present value of house. To calculate the annual percentage increase in the price of the house over the period of 16 years from January 2001 to January 2017, we can use wither use the formula for Future Value or Present value.
Here we are solving it using the future value formula which is,
FV = PV * (1 + r)^t
Where,
FV is Future ValuePV is Present valuer is the annual rate of increaset is time period in yearsPlugging in the values for FV, PV and t, we can calculate the value of r r annual percentage increase in the price.
300400 = 207300 * (1 + r)^16
300400 / 207300 = (1 + r)^16
1.449107574 = (1 + r)^16
Eliminating the power 16 by taking a power of 1/16 on both sides.
(1.449107574)^1/16 = (1 + r)^16/16
1.023455087 = 1 + r
1.023455087 - 1 = r
r = 0.023455 or 2.3455% rounded off to 2.35%
Mason Corporation had $650,000 in invested assets, sales of $700,000, operating income amounting to $99,000, and a desired minimum return on investment of 15%. The investment turnover for Mason Corporation is
Answer:
1.08 times
Explanation:
Mason corporation has $650,000 in invested assets
Sales is $700,000
Operating income is $99,000
Minimum investment on return is 15 percent
Therefore the investment turnover for mason corporation can be calculated as follows
= net sales/debt
= 700,000/650,000
= 1.08 times
be5-4, Prepare the journal entries to record the following transactions on Novy Company’s books using a perpetual inventory system. (a) On March 2, Novy Company sold $900,000 of merchandise to Opps Company, terms 2/10, n/30. The cost of the merchandise sold was $590,000. (b) On March 6, Opps Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000. (c) On March 12, Novy Company received the balance due from Opps Company.
be5-5, From the information in BE5-4, prepare the journal entries to record these trans- actions on Opps Company’s books under a perpetual inventory system.
Answer:
a: March 2
Dr Accounts Receivable 900,000
Cr Sales Revenue 900,000
March 2
Dr Cost of Good Sold 590,000
Cr Inventory 590,000
b. March 6
Dr Sales Returns and Allowances 90,000
Cr Accounts Receivable 90,000
March 6
Dr Inventory 62,000
Cr Cost of Goods Sold 62,000
c. March 12
Dr Cash 793,800
Dr Sales Discount 16,200
Cr Accounts Receivable 810,000
Explanation:
Preparation of Journal entries using a perpetual inventory system
a. March 2
Dr Accounts Receivable 900,000
Cr Sales Revenue 900,000
(To record sale of merchandise)
March 2
Dr Cost of Good Sold 590,000
Cr Inventory 590,000
b. March 6
Dr Sales Returns and Allowances 90,000
Cr Accounts Receivable 90,000
(To record sale of merchandise)
March 6
Dr Inventory 62,000
Cr Cost of Goods Sold 62,000
c. March 12
Dr Cash 793,800
(98%*810,000)
Dr Sales Discount 16,200
(2%*810,000)
Cr Accounts Receivable 810,000
(900,000-90,000)
A: March 2
Dr assets 900,000
Cr Sales Revenue 900,000
March 2
Dr Cost of excellent Sold 590,000
Cr Inventory 590,000
B. March 6
Dr Sales Returns and Allowances 90,000
Cr assets 90,000
March 6
Dr Inventory 62,000
Cr Cost of products Sold 62,000
C. March 12
Dr Cash 793,800
Dr Sales Discount 16,200
Cr assets 810,000
Journal entriesPreparation of Journal entries employing a perpetual inventory system
A. March 2
Dr assets 900,000
Cr Sales Revenue 900,000
(To record sale of merchandise)
March 2
Dr Cost of fine Sold 590,000
Cr Inventory 590,000
B. March 6
Dr Sales Returns and Allowances 90,000
Cr assets 90,000
(To record sale of merchandise)
March 6
Dr Inventory 62,000
Cr Cost of products Sold 62,000
C. March 1
Dr Cash 793,800
(98%*810,000)
Dr Sales Discount 16,200
(2%*810,000)
Cr assets 810,000
[tex](900,000-90,000)[/tex]
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Deitz Corporation is projecting a cash balance of $33,300 in its December 31, 2019, balance sheet. Deitz’s schedule of expected collections from customers for the first quarter of 2020 shows total collections of $205,350. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $47,730. Other information gathered for the first quarter of 2020 is sale of equipment $3,330; direct labor $77,700, manufacturing overhead $38,850, selling and administrative expenses $49,950; and purchase of securities $15,540. Deitz wants to maintain a balance of at least $27,750 cash at the end of each quarter. Prepare a cash budget for the first quarter.
Answer:
Deitz Corporation
Cash Budget
For the Quarter ended March 31, 2020:
Beginning balance $33,300
Cash Collections From Customers 205,350
Sale of Equipment 3,330
Total available cash $241,980
Cash Payments:
Direct materials $47,730
Direct labor 77,700
Manufacturing overhead 38,850
Selling & Administrative 49,950
Purchase of Securities 15,540 $(229,770)
Ending Balance $12,210
Minimum Balance 27,750
Shortfall $15,540
Explanation:
Deitz Corporation uses this Cash Budget which it has prepared to understand its financial needs for the next quarter. For example, with the minimum balance of $27,750 most likely based on past experience the corporation will start making arrangements for some outside funds to the tune of $15,540 or more to meet its cash needs for the first quarter.
The defect rate for data entry of insurance claims at Sadegh Kazemi Insurance Co. has historically been about 1.50% This exercise contains only parts a, b, c, d, and e.
a. If you wish to use a sample size of 100, the 3-sigma control limits are: UCLD (enter your response as a number between 0 and 1, rounded to three decimal places).
b. what if the sample size used were 50, with 3 standard deviation?
c. what if the sample size used were 100, with 2 standard deviation?
d. what if the sample size used were 50, with 2 standard deviation?
e. what happens to standard deviation Ap when the sample size is larger?
f. explain why the lower control limits cannot be less then 0.
Answer and Explanation:
Answer and explanation attached
Listed below are selected transactions of Blossom Department Store for the current year ending December 31.
1. On December 5, the store received $490 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15.
2. During December, cash sales totaled $821,100, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month.
3. On December 10, the store purchased for cash three delivery trucks for $110,300. The trucks were purchased in a state that applies a 5% sales tax.
4. The store determined it will cost $96,300 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Blossom estimates the fair value of the obligation at December 31 is $77,400.
Answer:
1. Dec. 5 Cash$490
Cr Due to customer$490
2. Dec. 1-31
Dr Cash821,100
Cr Sales Revenue782,000
Cr Sales Tax Payable 39,100
Dec. 10
Dr Trucks 115,815
Cr Cash115,815
Dec.31
Dr Land improvements 77,400
Cr Asset Retirement Obligation 77,400
Explanation:
Preparation of Journal entries
1. Dec. 5 Cash 490
Cr Due to customer 490
2. Dec. 1-31
Dr Cash821,100
Cr Sales Revenue782,000
Cr Sales Tax Payable 39,100
(821,100-782,000)
Dec. 10
Dr Trucks 115,815
Cr Cash115,815
Dec.31
Dr Land improvements 77,400
Cr Asset Retirement Obligation 77,400
Workings:
Dec. 1-31
Sales Revenue= ($821,100 ÷ 1.05)
Sales Revenue=$782,000
Sales Taxes Payable =($782,000 ×0.05)
Sales Taxes Payable=$39,100
Dec. 10Trucks= ($110,300 × 1.05)
Trucks =$115,815
Determine the taxable income for a firm as described here: The firm recorded revenues of $46,000 and recaptured depreciation of $2,000 for the year just ended During the year, the firm incurred cash expenses of $27,500 and depreciation expenses of $15,575.
Answer:
Taxable Income = $4,925
Explanation:
Computation of taxable income
Particulars Amount
Revenue $46,000
Add: Recaptured depreciation $2,000
Less: Cash expenses $27,500
Less: Depreciation expenses $15,575
Taxable Income $4,925
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case:Primatech Goods Corp. buys most of its raw materials from a single supplier. This supplier sells to Primatech Goods Corp. on terms of 2/20, net 30.What is the cost per period of the trade credit extended to Primatech Goods Corp.?a. 2.04%b. 2.24%c. 1.73%d. 1.94%What is the nominal annual cost of Primatech Goods Corp.'s trade credit?a. 63.29%b. 78.18%c. 81.91%d. 74.46%If Primatech Goods Corp.'s supplier shortens the discount period to five days, it will _____ the cost of the trade credit.a. increaseb. decrease
Answer:
a. 2.04%d. 74.46%b. decreaseExplanation:
1. Cost per period
= Discount/ (1 - Discount)
= 2% / ( 1 - 2%)
= 2.04%
2. Nominal Annual cost
= Cost per period * (365 / (Payment period - Discount period)
= 2.04% * [tex]\frac{365}{30 - 20}[/tex]
= 74.46%
3. Shortens it to five days.
= 2.04% * [tex]\frac{365}{30 - 5}[/tex]
= 29.78%
If Primatech Goods Corp.'s supplier shortens the discount period to five days, it will decrease the cost of the trade credit.
What's the diffrence between division manager and regional manager? please i need help i don't understand the difference.
Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7)
The following information applies to the questions displayed below. The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 4,000
Accounts Receivable 9,000
Supplies 3,000
Equipment 26,000
Accumulated Depreciation$ 6,000
Accounts Payable 4,000
Utilities Payable 5,000
Deferred Revenue 0
Common Stock 18,000
Retained Earnings 9,000
Totals $ 42,000 $ 42,000
The following is a summary of the transactions for the year:
1. January 24 Provide plumbing services for cash, $15,000, and on account, $60,000.
2. March 13 Collect on accounts receivable, $48,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,000.
5. September 15 Pay utilities of $5,000 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $8,000.
7. December 30 Pay $2,000 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $6,000.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $8,000 paid in advance by customers, $6,000 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $7,000.
Prepare the income statement for the year ended December 31 2021.
Prepare an adjusting trial balance.
Answer:
Pipers Plumbing
a. Adjusted Trial Balance:
Cash $46,000
Accounts Receivable 21,000
Supplies 1,000
Equipment 26,000
Accumulated Depreciation $12,000
Accounts Payable 4,000
Utilities Payable 7,000
Deferred Revenue 2,000
Service Revenue 81,000
Common Stock 28,000
Retained Earnings 9,000
Salaries Expense 32,000
Dividends 2,000
Depreciation Expense 6,000
Supplies Expense 2,000
Utilities Expense 7,000
Totals $143,000 $143,000
Income Statement
For the year ended December 31, 2021
Service Revenue $81,000
Salaries Expense 32,000
Depreciation Expense 6,000
Supplies Expense 2,000
Utilities Expense 7,000 47,000
Net Income $34,000
Retained Earnings 9,000
Dividends 2,000
Retained Earnings, Dec. 31, 2021 $41,000
Explanation:
a) Data and Calculations:
Account balances:
Accounts Debits Credits
Cash $ 4,000
Accounts Receivable 9,000
Supplies 3,000
Equipment 26,000
Accumulated Depreciation $ 6,000
Accounts Payable 4,000
Utilities Payable 5,000
Deferred Revenue 0
Common Stock 18,000
Retained Earnings 9,000
Totals $ 42,000 $ 42,000
T-accounts:
Cash
Date Accounts Debits Credits
Jan. 1 Balance $ 4,000
Jan. 24 Service Revenue 15,000
Mar. 13 Accts Receivable 48,000
May 6 Common Stock 10,000
June 30 Salaries $32,000
Sept. 15 Utilities 5,000
Nov. 24 Deferred Revenue 8,000
Dec. 30 Dividends 2,000
Dec. 31 Balance $46,000
Accounts Receivable
Date Accounts Debits Credits
Jan. 1 Balance $ 9,000
Jan. 24 Service Revenue 60,000
Mar. 13 Cash Account $48,000
Dec. 31 Balance $21,000
Supplies
Date Accounts Debits Credits
Jan. 1 Balance $ 3,000
Dec. 31 Supplies Expense $2,000
Dec. 31 Balance $1,000
Equipment
Date Accounts Debits Credits
Jan. 1 Balance $ 26,000
Accumulated Depreciation
Date Accounts Debits Credits
Jan. 1 Balance $ 6,000
Dec. 31 Depreciation 6,000
Dec. 31 Balance $12,000
Accounts Payable
Date Accounts Debits Credits
Jan. 1 Balance $ 4,000
Utilities Payable
Date Accounts Debits Credits
Jan. 1 Balance $ 5,000
Sept. 15 Cash $5,000
Dec. 31 Utilities Expense 7,000
Dec. 31 Balance $7,000
Deferred Revenue
Date Accounts Debits Credits
Jan. 1 Balance $ 0
Nov. 24 Cash 8,000
Dec. 31 Service Revenue $6,000
Dec. 31 Balance 2,000
Service Revenue
Date Accounts Debits Credits
Jan. 24 Cash Account $15,000
Jan. 24 Accounts Receivable 60,000
Dec. 31 Deferred Revenue 6,000
Dec. 31 Income Statement $81,000
Common Stock
Date Accounts Debits Credits
Jan. 1 Balance $ 18,000
May 6 Cash 10,000
Dec. 31 Balance $28,000
Retained Earnings
Date Accounts Debits Credits
Jan. 1 Balance $ 9,000
Salaries Expense
Date Accounts Debits Credits
June 30 Cash $32,000
Dividends
Date Accounts Debits Credits
Dec. 30 Cash $2,000
Depreciation Expense
Date Accounts Debits Credits
Dec 31 Acc Depreciation $6,000
Supplies Expense
Date Accounts Debits Credits
Dec 31 Supplies $2,000
Utilities Expense
Date Accounts Debits Credits
Dec 31 Utilities Payable $7,000
Clean Tel, Inc. is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment
Answer:
8%
Explanation:
Use the Time Value of Money Techniques to find the discount rate as follows:
Pmt = $1,000,000
Pv = - $7,139,000
Fv = $0
P/yr = 1
N = 11
I = ?
Using a financial calculator to input the values as above, the discount rate (i) to be used is 8%
You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $126,000. However, the realtor persuades the seller to take a $126,000 mortgage (called a seller take-back mortgage) at a rate of 5%, provided the loan is paid off in full in 3 years. You expect to inherit $140,000 in 3 years, but right now all you have is $14,000, and you can afford to make payments of no more than $22,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.)
Required:
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?
Answer:
Kindly check explanation
Explanation:
Given the following :
Cost of house = $140,000
Down payment = $14000
Take back mortgage = 126000 = PV
Rate (r) = 5%
Yearly payment one can afford = 22000
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
Number of period = 3
Using the relation:
PMT = r(PV) / 1 - (1 + r)^-n
PMT = 0.05(126000) / 1 - 1.05^-3
PMT = 6300 / (1-0.8638375)
PMT = 46,268.23
He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
PMT = r(PV) / 1 - (1 + r)^-n
PMT = 0.05(126000) / 1 - 1.05^-30
PMT = 6300 / (1-0.2313774)
PMT = 8196.48
He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?
Present value of remaining balance after the 3rd year:
Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]
Where
PMT = periodic payment = 8196.48
r = Interest rate = 5% = 0.05
n = number of periods = 30 - 3 = 27
PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]
PV = 8196.48[(1 - (1. 05)^-27) / 0.05]
PV = 8196.48[0.7321516 / 0.05]
PV = 120,021.32
Balloon payment :
120,021.32 + 8196.48 = 128,217.80
a. The annual payment if the Mortgage was amortized over three years is $45,315.96 (Interest + Principal)
The Mortgage payments are not affordable because his affordability funds are limited to $22,000 annually.
Annual Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $126,000.00 $5,393.36 $39,922.60 $86,077.35
2 $86,077.35 $3,350.86 $41,965.10 $44,112.18
3 $44,112.18 $1,203.81 $44,112.15 $0.00
b. The annual payment if the Mortgage was amortized over thirty years is $8,116.80 (Interest + Principal)
The Mortgage payments are now affordable with his affordability amount of $22,000 per year.
Annual Amortization Schedule for the first three years:
Beginning Balance Interest Principal Ending Balance
1 $126,000.00 $6,257.79 $1,859.01 $124,141.04
2 $124,141.04 $6,162.68 $1,954.12 $122,186.97
3 $122,186.97 $6,062.70 $2,054.10 $120,132.93
c. Payments made by the end of the third year were $5,867.07 with a balance of $120,132.93.
Data and Calculations:
Cost of house = $140,000
Down payment = $14,000
Mortgage value = $126,000($140,000 - $14,000)
Mortgage interest rate = 5%
Affordable annual payments = $22,000
Thus, the balloon payment is always based on an agreed percentage of the loan, which is not provided here.
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[accounting] A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $2,200 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $2,200.
Compute the amount of overstatement or understatement for each of the following amounts for this period.
a. ending inventory
b. total assets
c. net income
d. total equity
Answer:
a. Ending inventory - UNDERSTATED by $2,200
The goods were shipped FOB shipping point which means that they should be included as inventory as soon as they are shipped by the supplier. As they were not, Inventory was understated by $2,200.
b. Total assets - UNDERSTATED by $2,200
Inventory is part of Assets so if Inventory is understated by $2,200 then so are Total Assets.
c. Net income - UNDERSTATED by $2,200
Ending Inventory is subtracted from Cost of Goods sold which is then subtracted from Revenue. As ending inventory was understated, that means Cost of Goods sold was Overstated and therefore had the effect of understating Revenue and by extension, Net Income.
d. Total equity - UNDERSTATED by $2,200
Net Income goes to Total equity as Retained earnings so if Net income is understated so also is Total equity.
The amount of understatement for ending inventory, total assets, net income, and total equity is $2200.
From the information given, the amount of overstatement or understatement for each amount for this period will be:
Ending inventory = $2200 = Understated Total assets = $2200 = Understated Net income = $2200 = Understated Total equity = $2200 = UnderstatedWhen inventory is understated, the assets will be understated too. Also, when net income is understated, total equity is understated too.
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Pyramid Products Company has a revolving credit agreement with its bank. The company can borrow up to $1 million under the agreement at an annual interest rate of 9 percent. Pyramid is required to maintain a 10 percent compensating balance on any funds borrowed under the agreement and to pay a 0.5 percent commitment fee on the unused portion of the credit line. Assume that Pyramid has no funds in the account at the bank that can be used to meet the compensating balance requirement. Determine the annual financing cost of borrowing each of the following amounts under the credit agreement:
a. $250,000
b. $500,000
c. $1,000,000
Answer:
a. $250,000
if you borrow $250,000, you will only get $225,000, but you will still have to pay interest for the whole amount, so total interest charge = $250,000 x 9% = $22,500. Additionally, you must pay $750,000 x 0.5% for the unused portion = $3,750.
total interests charged = $26,250 / $250,000 = 10.5%
b. $500,000
if you borrow $500,000, you will only get $450,000, but you will still have to pay interest for the whole amount, so total interest charge = $500,000 x 9% = $45,000. Additionally, you must pay $500,000 x 0.5% for the unused portion = $2,500.
total interests charged = $47,500 / $450,000 = 10.56%
c. $1,000,000
since you need to have at least 10% in the bank, if you borrow $1,000,000, you will only get $900,000. So you cannot actually borrow $1 million, your net borrowing = $900,000. But you will still have to pay interest for the whole amount, so total interest charge = $1,000,000 x 9% = $90,000.
total interests charged = $90,000 / $900,000 = 10%
Warrix Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) $120,000
Variable expenses 90,000
Contribution margin 30,000
Fixed expenses 27,000
Net operating income $3,000
a. If sales increase to 3,100 units, net operating income would be closest to: ____________
b. If sales increase to 3,100 units, the breakeven point in units would:_____________
c. If sales increase to 3,100 units, the degree of operating leverage would:___________
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
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:
The Polishing Department of Major Company has the following production and manufacturing cost data for September.Materials are entered at the beginning of the process.Production:Beginning Inventory 1,880 units that are 100% complete as to materials and 30% complete as to conversion costs;Units started during the period are 44,300;Ending inventory of 7,200 units 10% complete as to conversion costs.Manufacturing Costs:Beginning Inventory costs, comprised of $21,900 of materials and $37,162 of conversion costs;Materials costs added in Polishing during the month, $214,080;labor and overhead applied in Polishing during the month, $127,600 and $258,440, respectively.Required:1. Compute the equivalent units of production for materials and conversion costs for the month of September.Materials Conversion CostsThe equivalent units of production 2. Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25)Materials Conversion CostsUnit Costs 3. Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places.)Transferred Out $Ending work in process $
Answer:
1. Materials = 46,180 and Conversion Costs = 39,700
2.Materials = $5.11 and Conversion Costs = $10.66
3.Transferred Out = $614,715 and Ending work in process = $44,467
Explanation:
First, calculate the number of units completed and transferred to finished goods
Number of units completed and transferred to finished goods = Beginning Inventory Units + Units Started during the Period - Ending Inventory Units
Therefore,
Units completed and transferred = 1,880 + 44,300 - 7,200
= 38,980
Calculation of Equivalent Units of Production with respect to Materials and Conversion Costs
1. Materials
Ending Work In Process (7,200 × 100%) = 7,200
Completed and Transferred (38,980 × 100%) = 38,980
Equivalent Units of Production with respect to Materials = 46,180
2. Conversion Costs
Ending Work In Process (7,200 × 10%) = 720
Completed and Transferred (38,980 × 100%) = 38,980
Equivalent Units of Production with respect to Materials = 39,700
Calculation of the unit costs for materials and conversion costs for the month.
Unit Cost = Total Cost ÷ Total Equivalent Units
1. Materials
Unit Cost = ($21,900 + $214,080) ÷ 46,180
= $5.11 (2 decimal places)
2. Conversion Costs
Unit Cost = ($37,162 + $127,600 + $258,440 ) ÷ 39,700
= $10.66 (2 decimal places)
3. Total Unit Cost
Total Unit Cost = Materials + Conversion Costs
= $5.11 + $10.66
= $15.77
Calculation of costs to be assigned to the units transferred out and in process.
Transferred Out = Units Completed and Transferred × Total Unit Cost
= 38,980 × $15.77
= $614,715
Ending work in process = Materials Cost + Conversion Costs
= ($5.11 × 7,200) + ($10.66 × 720)
= $44,467
For Sheffield Corp., sales is $1660000 (8300 units), fixed expenses are $480000, and the contribution margin per unit is $80. What is the margin of safety in dollars
Answer:
$460,000
Explanation:
The computation of the margin of safety in dollars is shown below:-
Break even sales = fixed cost ÷ contribution per unit
= $480,000 ÷ $80
= 6,000 units
The Margin of safety in dollars = Total sales - Break even sales
= 8,300 - 6,000
= 2,300
sale price = $1660000 ÷ 8,300
= $200 per unit
margin of safety in dollars = 2,300 × $200
= $460,000