Business

Lansbury Inc. had the following balance sheet at December 31, 2019.LANSBURY INC. BALANCE SHEET DECEMBER 31, 2019Cash $20,000 Accounts payable $30,000Accounts receivable 21,200 Notes payable (long-term) 41,000Investments 32,000 Common stock 100,000Plant assets (net) 81,000 Retained earnings 23,200Land 40,000 $194,200 $194,200During 2021 the following occurred: 1. Lansbury Inc. sold part of its investment portfolio for $15,000 This transaction resulted in a gain of $3,400 for the firm. The company classifies its investments as available-for- sale. 2. A tract of land was purchased for $18,000 cash. 3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying $16,000 cash. 4. An additional $20,000 in common stock was issued at par. 5. Dividends totaling $8,200 were declared and paid to stockholders. 6. Net income for 2021 was $32,000 after allowing for depreciation of $11,000 7. Land was purchased through the issuance of $30,000 in bonds. 8. At December 31, 2021, Cash was $32,000 Accounts Receivable was $41,600 and Accounts Payable remained at $30,000Requried:a. Prepare a statement of cash flows for 2017.b. Prepare an unclassified balance sheet as it would appear on December 31, 2017.c. Compute two cash flow ratios.
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Suppose that in a competitive market without government regulations, the equilibrium price of a hamburger is $7 each.Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.Statement Price Control Binding or NotDue to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so. The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.
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Business professionals often use the acronym SMART to describe good business goals. What does the acronym stand for?The acronym SMART stands for Specific, , Achievable, Realistic, and .
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Which statement best summarizes why productivity of workers is important to businesses? (5 points)Group of answer choicesProductive workers save businesses time and money.Productive workers work cooperatively with teammates.Productive workers tend to be promoted to management.Productive workers work slowly to produce high quality items.
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Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019: Home acquisition debt interest $ 15,000 Credit card interest 5,000 Home equity loan interest (used for home improvement) 6,500 Investment interest expense 10,000 Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
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Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $1,800,000 Expenses: Cost of goods sold $1,050,000 Operating expenses 560,000 Depreciation expense 50,000 Income tax expense 40,000 Total expenses 1,700,000 Net income $100,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2021 2020 Increase (I) or Decrease (D) Cash $102,000 $85,000 $17,000 (I) Accounts receivable 45,000 49,000 4,000 (D) Inventory 75,000 55,000 20,000 (I) Prepaid rent 3,000 5,000 2,000 (D) Accounts payable 45,000 37,000 8,000 (I) Income tax payable 5,000 10,000 5,000 (D)Required:Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method.
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A steel rolling mill can produce I-beams at the rate of 20 tons per week. Customer demand for the beams is 5 tons per week. To produce the I-beams, the mill must go through a setup that requires changing to the required rolling patterns. Each setup costs the mill $10,000 in labor and lost production. The I-beam cost the mill $2,000 per ton and has an inventory holding rate of 25 percent. Assume the plant operates for 50 weeks in a year. Using Microsoft Excel, calculate the following: a) the optimal production batch size of the mill. b) The maximum (highest) inventory level at the plant c) The annual inventory holding cost d) The annual setup cost of the plant e) The annual product cost f) Total Annual Inventory Cost (TAIC)
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What are the nominal and effective costs of trade credit under the credit terms of 3/10, net 30? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.
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Intangible Assets and Goodwill: Amortization and Impairment In early 2011, Bowen Company acquired a new business unit in a merger. Allocation of the acquisition cost resulted in fair values assigned as follows: Intangible Asset Fair Value Estimated Value Customer lists $400,000 5 years Developed technology 640,000 10 years Internet domain name 1,040,000 Indefinite Goodwill 4,960,000 Indefinite The goodwill is assigned entirely to the acquired business unit. Impairment reviews at the end of 2011 and 2012 did not identify any impairment losses. After the business suffered a downturn during 2013, the year-end impairment review yielded the following information: Customer lists are estimated to have undiscounted future cash flows of $200,000 and discounted future cash flows of $144,000.The internet domain name is estimated to have undiscounted future cash flows of $800,000 and discounted future cash flows of $600,000. The acquired business unit has a fair value of $13,600,000, a carrying amount of $14,800,000, and the fair value of its identifiable net assets is $11,360,000.Required:Determine Bowen's amortization expense and impairment write-offs for 2013.
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How is an excise tax different from a sales tax?A). An excise tax is not deductible.B). An excise tax applies to specific products.C). An excise tax applies only to imported goods.D). An excise tax is an indirect tax.
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Orange Inc., an orange juice producer with a current debt-to-equity ratio of 2, is considering expanding its operations to produce toothpaste. Unsurprisingly, the toothpaste industry faces a different set of risks than the orange juice industry. However, the executives at Orange Inc. observe that Paste Inc., a toothpaste company, has a cost of equity of 12%, a cost of debt of 6%, and a debt-to-value ratio of 40%. Orange Inc. plans to finance its expansion into toothpaste production with 50% debt and 50% equity. The cost of debt for Orange Inc. is also 6%, and the corporate tax rate is 25%. Solve for the discount rate that Orange Inc. should use when evaluating whether to go forward with the expansion Note: Orange Inc. does not want to use the Adjusted Present Value method. Appropriate Rate = 12.08% Appropriate Rate = 9.60% Appropriate Rate = 13.20% Appropriate Rate = 8.85% Assume Last Inc. has no cash on hand, but wants to take on a project that adds $30 million in market value to the firm's assets, and has an NPV of $20 million. The project requires an initial investment of $10 million. LastQ Inc. wants to maintain its 50% Debt to Value Ratio. How much debt should LastQ issue, and how much should they pay stockholders in dividends? Issue $30 million in debt, pay $5 million to shareholders Issue $15 million in debt, pay $5 million to shareholders Issue $10 million in debt, pay $20 million to shareholders Issue $20 million in debt, pay $8 million to shareholders
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Cooperatives save members money byO purchasing supplies and services as a group.securing financing from banks as a group.O charging more to sell their products as a group.O sharing all profits democratically as a group.
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Learning Objective 4 - Prepare Financial StatementsFrom the data below prepare an income statement, a statement of owner'sequity, and a balance sheet for the month ended March 31, 200x for SnowExcursions Company.DescriptionBalances on March 31, 200xJon Snow Capital (beg balance)S2,000Snow Equipment1.000Rent Expense400Accounts Payable2,000Fee Revenue1.000Cash3,000Utilities expense100Accounts Receivable1505Salary expenses200Withdrawals150
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A pie graph uses _________to represent information. a. Lines c. Odd numbers b. Dots d. Percentages
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What are four important factors to remember before making a career decision?
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A client heard through its hotline that John, the purchases journal clerk, periodically enters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent suppliers address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent suppliers name. Required a. Define fraud, fraud deterrence, fraud detection, and fraud investigation. b. List four personal (as opposed to organizational) fraud symptoms, or red flags, that indicate the possibility of fraud. Do not confine your answer to this example. c. List two procedures you could follow to uncover Johns fraudulent behavior. (CIA Examination, adapted)
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Which of the following is the strongest password?
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If annualized interest in the U.S. and France are 9% and 13%, respectively, and the spot value of the French franc is $0.1109, then at what 180-day forward rate will interest rate parity hold
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What can you conclude about a firm in the short run from its marginal product numbers as its output approaches capacity production
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If the value of the goods and services a country produces stays the samewhile its population increases, which statement must be true?O A. The country's unemployment rate has decreased.O B. The country's total GDP has increased.O C. The country's per capita GDP has decreased.O D. The country's rate of inflation has increased.SUBMIT
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PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)Every monetary decision we make involves a level of choice, usually of one thing over another. What is the name for this financial trade-off? A. personal risksB. inflation C.opportunity cost
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What are the subjects of economics
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Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $18,600. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,550, outstanding checks of $2,100, a NSF check of $800, bank service charges of $35 and the EFT from a customer in payment of the customer's account of $1,600. What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)? Multiple Choice $18,050 $17,285 $19,150 $20,415
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If a company paid $6,000 in advance for a year's worth of insurance, howmuch money would need to be adjusted after one month?O A. $500B. $6,000O C. $1,000O D. $3,000
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