Business

Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 1.90:1, and an acid-test ratio of 1.70:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $75,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $55,000 for $150,000 cash. 10 Collected $26,000 cash on an account receivable. 15 Paid $29,500 cash to settle an account payable. 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. 22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock. 26 Paid the dividend declared on May 22. 27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note. 28 Borrowed $135,000 cash by signing a long-term secured note. 29 Used the $255,000 cash proceeds from the notes to buy new machinery.Required Prepare a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
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On December 31, 2012, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:Contract price $520 millionEstimated construction costs $300 millionEstimated total profit $220 millionDuring the three-year construction period, Tri-State incurred costs as follows:2013 $ 30 million2014 $180 million2015 $ 90 millionTri-State uses the percentage of completion method to recognize revenue. Which of the following represent the revenue recognized in 2013, 2014, and 2015?A. $52 million, $312 million, $156 millionB. $12 million, $72 million, $36 millionC. $140 million, $140 million, $140 millionD. $30 million, $180 million, $90 millionE. None of the above
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Combination Fraction of Portfolio in Diversified Stocks Average Annual Return Standard Deviation of Portfolio Return (Risk) (Percent) (Percent) (Percent) A 0 2.00 0 B 25 4.50 5 C 50 7.00 10 D 75 9.50 15 E 100 12.00 20 If Rosa reduces her portfolio's exposure to risk by opting for a smaller share of stocks, he must also accept a average annual return. Suppose Rosa currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bonds; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 4.5% to 9.5%. In order to do so, she must do which of the following?a. Sell some of her bonds and use the proceeds to purchase stocks b. Sell some of her stocks and use the proceeds to purchase bonds c. Place the entirety of her portfolio in bonds d. Accept a lower average annual rate of return
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Suppose that the ToyCo Shoppe allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the strawberry cheesecake. (Round answers to 3 decimal places, e.g. 15.254.) Overhead rate $enter a dollar amount per direct labor dollar rounded to 3 decimal places per direct labor dollar Direct labor cost $enter a dollar amount per unit rounded to 3 decimal places per unit Overhead assigned $enter a dollar amount per unit rounded to 3 decimal places per unit
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Zola Inc. paid a $10,000 legal fee to the attorney who resolved a dispute over Zola's title to investment land. Zola's auditors required the corporation to expense the payment for financial statement purposes. The tax law required Zola to capitalize the payment to the basis of the land. This difference in accounting treatment results in a:
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What is a "debt-to-income" ratio?OA. How much money you have to make every year in your job.OB. How much money you owe in total versus how much you make.O C. How much money you have to pay back on your income.How much money you owe on your student loan compared with how muchOD.you want to make in your job.
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On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $102 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round your final answers to nearest whole dollar amount.)
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Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows: Pawn Sox Current assets-net $200,000 $50,000 Property, plant, and equipment-net 1,000,000 600,000 Investment in Sox 558,000 $1,758,000 $650,000 Current liabilities $100,000 $30,000 Capital stock 800,000 400,000 Retained earnings 858,000 220,000 $1,758,000 $650,000 Pawn acquired its interest in S for cash when S's assets and liabilities were smaller than their fair values. The consolidated balance sheet of P and S at December 31, 20X1 will show:a. non-controlling interest, $65,000b capital stock, $800,000c. investment in Sioux, $558,000d. retained earnings, $1,078,000
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A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume annual interest payments.) a. What interest payments do bondholders receive each year
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Supply-side policies have proven that smaller government makes the economy more efficient. Select one: True False
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What is the difference between a partner and a limited (silent) partner?
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Ashton is working on a project at PowerTek Inc., a well-known multinational corporation. He is using capital budgeting to estimate the project's future cash flows. He finds that the present value of the estimated future cash flows is greater than the cost of the project. How likely is he to gain approval from the board? Group of answer choices
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Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next years plans call for a $210 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $193,200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $168 per 100 yards of XT rope.1. Estimate Product XT's break-even point in terms of sales units and sale dollars.2. Prepare a CVP chart for Product XT. Use 7,000 units (700,000 yards/100 maximum number of sales units on the horizontal axis of the graph, and $1,400,000 as the maximum dollar amount on the vertical axis.3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.
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Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 715,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 201,000 units that are 90% complete with respect to conversion. Beginning work in process inventory had $416,780 of direct materials and $201,578 of conversion cost. The direct material cost added in November is $2,789,220, and the conversion cost added is $3,829,972. Beginning work in process consisted of 80,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 80,000 were from beginning work in process and 635,000 units were started and completed during the period.Required:Determine the equivalent units of production with respect to direct materials and conversion.
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Marigold Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $192000 loss in the year of disposal. The loss on disposal of the segment was $99000. If the tax rate is 30%, and income before income taxes was $1630000. a. the income tax expense on the income before discontinued operations is $378300. b. the income from continuing operations is $1141000. c. net income is $1339000. d. the losses from discontinued operations are reported net of income taxes at $291000.
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What are the costs and benefits to employers of being responsive to the applicant's perspective throughout the selection process?
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The ability to grow and expand capacity as needed without negatively affecting the contribution margin of the business is referred to as _______.
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Budgeting for NeedsSelect the items that are needs from your credit card statement.CREDIT CARD STATEMENTLast Month Groceries$200 Movie rentals$15 Concert tickets$120 Internet services$60 Fitness class$35 Go-kart racing$50
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what is some ways to help people ?
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Does anyone know the answer to this management question?
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Which best explains why producers choose to specialize? Check all that apply.to increase competitionOto gain a comparative advantageOto decrease the amount of goods producedO to maintain market shareto increase efficiency
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Why is it difficult for products to "cross the chasm"? Because the product does not appeal to visionaries. Because the product has a brand name that does not translate well to other countries. Because the product's positioning strategy is not consistent with prior product releases. Because the product's value proposition may attract visionaries but may never get acceptance in the mass market.
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Cost-Volume-Profit Analysis CVP exercises The Deli-Sub Shop owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year: Revenues $11,000,000 Fixed costs $3,000,000 Variable costs $7,500,000 Variable costs change based on the number of subs sold. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. Cell references and formulas should be based on the original data. If you copy/paste from the Instructions tab you will be marked wrong. Requirements Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.) a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b. Refer to the budgeted operating income based on the original budget data in all calculations. 1 Determine the budgeted operating income based on the original budget data. 2 A 10% increase in contribution margin, holding revenues constant 3 A 10% decrease in contribution margin, holding revenues constant 4 A 5% increase in fixed costs 5 A 5% decrease in fixed costs 6 A 5% increase in units sold 7 A 5% decrease in units sold 8 A 10% increase in fixed costs and a 10% increase in units sold 9 A 5% increase in fixed costs and a 5% decrease in variable costs 10 Which of these alternatives yields the highest budgeted operating income?
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Community colleges and vocational schools offer programs in maintenance and repair.ATrueB.False
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