Answer:
$6,625
Explanation:
The computation of total Cost of WIP inventories is shown below:-
Manufacturing overhead under-applied = $1,200 × $2,135 ÷ $42,700
= $60
Total Cost of WIP inventories = Direct materials + Direct labor + Manufacturing overhead applied + Manufacturing overhead under-applied
= $2,620 + $1,810 + $2,135 + $60
= $6,625
Therefore for calculating the total Cost of WIP inventories we simply applied the above formula.
Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 70% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 30,000 curtain rods per year. A supplier offers to make a pair of finials at a price of $12.95 per unit. If Pottery Ranch accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $45,000 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products.
Prepare an incremental analysis to decide if Pottery Ranch should buy the finials.
Answer and Explanation:
The preparation of the incremental analysis is presented below
Particulars Make Buy net Income Increase or (decrease)
Direct material $120,000 - $120,000
[$4 × 30,000]
Direct labor $150,000 - $150,000
[$5 × 30,000]
variable manufacturing $105,000 - $105,0000
[$150,000 × 70% ]
Fixed manufacturing $45,000 $45,000 -
Purchase price - 373,560 -$373,560
[30,000 × $12.95 ]
Total annual cost $420,000 $433,500 -$13,500
There is a decrement of $13,500 so it should be make decision rather buying decision
Waterway Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Waterway purchased $33,000 of inventory, terms 1/10, n/30, FOB shipping point. (2) Waterway paid freight costs of $1,105. (b) On July 3, Waterway returned damaged goods and received credit of $3,300. (c) On July 10, Waterway paid for the goods.
Answer:
The journal records to record the transactions are:
July 1, purchased merchandise on account, terms 1/10, n/30
Dr Merchandise inventory 34,105
Cr Accounts payable 33,000
Cr Cash 1,105 (freight costs paid in cash)
July 3, damaged goods are returned
Dr Accounts payable 3,300
Cr Merchandise inventory 3,300
July 10, invoice is paid within discount period
Dr Accounts payable 29,700
Cr Cash 29,403
Cr Purchase discounts 297
The 1% discount is applied only to the merchandise invoice and it must be recorded as a contra expense account (purchase discounts) with a credit balance because it reduces COGS.
Insigne Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $31,700, and its ending inventory on December 31 was overstated by $16,300. In addition, a purchase of merchandise costing $74,000 was incorrectly recorded as a $7,400 purchase. None of these errors were discovered until the next year. As a result, taxable income for this year was:
Answer:
Taxable income understated by $82,000
Explanation:
Computation:
Particular Amount
Incorrectly recorded purchase $7,400
Add: Ending inventory overstated $16,300
$23,700
Less: Opening inventory overstated $31,700
Less: Purchase of inventory $74,000
Taxable income understated $82,000
what kind of applications can improve the quality of your blog ?
A) plugins
B) advanced graphics
C) live webcams
D) hyperlinks
Plugins, advanced graphics, and hyperlinks are all applications that can improve the quality of your blog. Plugins enhance functionality, advanced graphics improve visual appeal, and hyperlinks provide further information.
Explanation:Indeed, various applications can significantly improve the quality of your blog. If we examine the options, we will find that A) plugins are software components that add specific features to an existing computer program, in this case, your blog. These can enhance functionality or add new features to your blog site.
B) Advanced graphics can also improve the quality of your blog by making it more visually appealing to the readers, thereby improving their overall user experience.
Additional beneficial applications for your blog also include D) hyperlinks. Hyperlinks can link your blog to additional sources of information or relevant content, which will give your blog a depth of content and can help keep your readers engaged.
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Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Answer:
$5.89
Explanation:
The computation of current dividend per share is shown below:-
(Dividend in One Year) ÷ Current Price
= 14% ÷ 2
= 7%
Dividend = Dividend yield × Stock currently sold per share
= 0.07 × $90
= 6.3
Current dividend per share = Dividend ÷ (1 + Dividend yield)
= 6.3 ÷ (1 + 0.07)
= 6.3 ÷ 1.07
= $5.89
Therefore for computing the current dividend per share we simply applied the above formula.
g On January 1 the company had office supplies costing $2,700 recorded as an asset. During the year $9,600 of office supplies were purchased and recorded as an asset, but the company did not make any journal entries to record the use of supplies during the year. The physical count on December 31 revealed that supplies of $3,100 were remaining. What adjusting entry would be necessary on December 31
Answer:
Debit Supplies expense $9200
Credit Supplies account $9200
Explanation:
The adjustment required is for the recognition of supplies used. When supplies are purchased, Debit Supplies account, credit cash or accounts payable. On use of supplies, Debit Supplies expense, credit Supplies account
The movement in the balance of supplies at the start and end of a period is as a result of usage and purchases. While usage reduces the balance in supplies, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - units used = closing balance
$2,700 + $9,600 - Units used = $3,100
Units used = $2,700 + $9,600 - $3,100
= $9,200
Use the following to answer questions 3-8: Number of Workers Total Cost 0 1000 1 2200 2 3200 3 4000 4 4600 5 5000 6 5200 7 5600 8 6200 9 7000 10 8000 If hiring the 4th worker increases total product by 50 units and the price of each unit is $15, a. the firm should not hire the 4th worker as MRMC c. marginal revenue equals $150 d. the firm should not hire the 4th worker as MR
Answer:
Firm should hire the 4th worker as MR > MC.
Explanation:
Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.
Marginal cost of hiring 4th worker:
= Total cost with 4 workers - Total cost with 3 workers
= $4,600 - $4,000
= $600
Total revenue generated by the 4th worker:
= Number of units produced by 4th worker × Price of each unit
= 50 × $15
= $750
Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.
on september 1, best company began a contract to provide services to dilwood company for 6 months, with the total of $10800 payment to be made at the end of the six month period. equal services are provided each motnth. the firm usees the account fees receivable to reflect amounts due but not yet bulled. what propoer adjusting entry would best company make on devcember 31, the end of the accounting period (no previous adjustment has been made)
Answer:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
Explanation:
Th adjusting entry is shown below:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues
Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31
= $10,800 × 4 months ÷ 6 months
= $7,200
Final answer:
The correct adjusting entry for Best Company on December 31st to reflect four months of services provided to Dilwood Company would be a debit to Fees Receivable and a credit to Service Revenue for $7,200.
Explanation:
The student's question pertains to the area of accounting, specifically adjusting entries at the end of an accounting period. Since Best Company began providing services on September 1st for a 6-month contract at $10,800 total, and no invoice has been sent by December 31st, Best Company needs to recognize the revenue earned for services provided up to this point, despite not receiving payment yet. By December 31st, four months of service have been provided.
The revenue per month can be calculated by dividing the total contract amount by the number of months in the service period: $10,800 / 6 months = $1,800 per month. For four months of service, the total revenue earned but not yet billed is $1,800 x 4 = $7,200. Therefore, the adjusting entry on December 31st would be:
Debit Fees Receivable: $7,200
Credit Service Revenue: $7,200
This entry recognizes the revenue earned for services provided from September 1st to December 31st.
Last year, you purchased a stock at a price of $60.00 a share. Over the course of the year, you received $2.90 per share in dividends and inflation averaged 3.4 percent. Today, you sold your shares for $65.60 a share. What is your approximate real rate of return on this investment
Answer:
Real rate of return= 13.7%
Explanation:
The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.
Dividend is the proportion of the profit made by a company which is paid to shareholders.
Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.
Therefore, we can can compute the return on the investment as follows:
The total return = (2.90) + (65.60-60)= 8.5
To determine the real return, we adjust the nominal return for the impact of inflation as follows:
Real total return ($) = 8.5/1.034=8.220
Total return in (%) = (8.220 /60)× 100= 13.7%
Answer:
1.1%
Explanation:
To calculate the approximate real rate of return on the investment, we first need to calculate the nominal rate of return. As shown below:
Nominal Return = (Price of Share Sold - Price of the Share + Dividend received on share) / Price of the Share x 100
Nominal return = ($65.60 - $60.00 + $2.90) / $60.00
= 0.045 x 100
= 4.5%
Then we deduct the inflation rate from the nominal return to get the approximate real rate. This calculate below:
Approximate real rate = Nominal Return - Inflation rate
Approximate real rate = 4.5% - 3.4%
= 1.1%
Hence, the approximate real rate on this investment is 1.1%.
Stock S is expected to return 12 percent in a boom, 9 percent in a normal economy, and 2 percent in a recession. Stock T is expected to return 4 percent in a boom, 6 percent in a normal economy, and 9 percent in a recession. There is a 10 percent probability of a boom and a 25 percent probability of a recession. What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock
Answer:
3.6%
Explanation:
Standard Deviation is the quantity that shows how much a each element of a group differs from the mean of the group on average.
Standard Deviation is 3.6%. All the calculations and workings are done in an MS Excel file, which is attached with this answer, please find it.
Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for this investment using the Equity Method. For the year ended December 31, YR01, Affiliate Co. reported net income of $1,000. Also, during YR01 the company declared and paid cash dividends totaling $200 to holders of its common stock. Given these facts, how will the Operating, Investing, and Financing sections of the statement of cash flows for Parent Inc. be affected (assume use of the indirect method of presentation)
Answer:
net cash from investing activities = -$4,940
operating and financing activities are not affected.
Explanation:
the journal entries should be:
January 1, socks purchased
Dr Investment in Affiliate 5,000
Cr Cash 5,000
December 31, dividends received
Dr Cash 60
Cr Investment in Affiliate 60
December 31, Affiliate reports net income
Dr Investment in Affiliate 300
Cr Revenue from investing activities 300
Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.
The cash flow from investing activities will:
Decrease by $5,000 due to the purchase of stocks. Increase by $60 due to the dividends received. net cash from investing activities = -$4,940On January 31, 2013, B Corp. issued $600,000 face value, 12% bonds for $600,000 cash. The bonds are dated December 31, 2012, and mature on December 31, 2022. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2013, balance sheet?
Answer:
The accrued interest payable B should report in its September 30, 2013 is $54,000.
Explanation:
Bonds are long-term liability or debt, usually issued at face value, discount or premium.
The accrued interest payable on September 30, 2013 will be calculated as follows: Face value of the bond x Period interest rate (semi-annual).
Interest accrual: ($600,000 x 12% / 2) + ($600,000 x 12% / 2 x 3/6) = $54,000
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $545,000. The corporation's basis in the Tea Company stock was $500,000. The land had a basis to Tea Company of $780,000. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives
Answer:
Gain recognized = $45,000
Basis in the land = $545,000
Explanation:
The computation of amount of gain and basis in the land it receives is shown below:-
This refers to taxable exchange. Therefore the Red Blossom would recognize a gain = Fair Market value - Basis in the Tea Company stock
= $545,000 - $500,000
= $45,000
and
The basis in the land it receives will be the fair value or
= Basis in the Tea Company stock + Gain
= $500,000 + $45,000
= $545,000
An investment fund has the following assets in its portfolio: $40 million in fixed-income securities and $40 million in stocks at current market values. In the event of a liquidity crisis, it can sell its assets at a 96 percent discount if they are disposed of in two days. It will receive 98 percent if disposed of in four days. Two shareholders, A and B, own 6 percent and 8 percent of equity (shares), respectively. Market uncertainty has caused shareholders to sell their shares back to the investment fund. What will the two shareholders receive if the investment fund must sell all its assets in two days, in four days?1A. Two Days $_______millions.B. Two Days $_______millions.2A. Four Days $________millions.B. Four Days $________million.
Answer:
Sells with 2 days:
$ 4,608,000
$6,144,000
Sells within 4 days
$4,704,000
$6,272,000
Explanation:
The computation sell of two days and four days is shown below:-
Sells with 2 days:
Value of fixed-income securities = $40,000,000 × 0.96
= $38,400,000
Value of stock =$40,000,000 × 0.96
= $38,400,000
Total value = $76,800,000
Shareholder A gets from 6% of equity = $76,800,000 × 6%
= $ 4,608,000
Shareholder B gets from 8% of equity = $76,800,000 × 8%
= $6,144,000
Sells within 4 days
Value of fixed-income securities = $40,000,000 × 0.98
= $39,200,000
Value of stock =$40,000,000 × 0.98
= $39,200,000
Total value =$78,400,000
Shareholder A gets from 6% of equity = $78,400,000 × 6%
= $4,704,000
Shareholder B gets from 8% of equity = $78,400,000 × 8%
= $6,272,000
Southern Foods just paid an annual dividend of $1.10 a share. Management estimates the dividend will increase by 10 percent a year for the next four years. After that, the annual dividend growth rate is estimated at 3.2 percent. The required rate of return is 12 percent. What is the value of this stock today?
Answer:
$16.21
Explanation:
Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.
Dividend Payment $1.10
Growth rate first 3 years 10%
Growth rate first 4 years 3.2%
Required rate of return 12%
Dividend Discount Factor PV Factor
First year Dividend $1.21 0.892857143 $1.08
Second year Dividend $1.33 0.797193878 $1.06
Third year Dividend $1.46 0.711780248 $1.04
Fourth year Dividend $1.61 0.635518078 $1.02
Stock value after fourth year = $18.89 0.635518078 $12.00
Stock Value $16.21
Final answer:
To calculate the value of the stock today, you need to determine the present value of all the future dividends. The formula to use is Future Dividend = D0 * (1 + g) + D0 * (1 + g)² + ... + D0 * (1 + g)ⁿ, where D0 is the dividend in the current year, g is the annual dividend growth rate, and n is the number of years. After calculating the future dividends, you can use the present value formula PV = FV / (1 + r)ⁿ, where PV is the present value, FV is the future value, r is the required rate of return, and n is the number of years.
Explanation:
To calculate the value of the stock today, we need to determine the present value of all the future dividends. The dividend in the current year is $1.10 per share. To find the future dividends, we can use the formula for the future value of a growing annuity. The formula is: Future Dividend = D0 * (1 + g) + D0 * (1 + g)² + ... + D0 * (1 + g)ⁿ, where D0 is the dividend in the current year, g is the annual dividend growth rate, and n is the number of years.
Using this formula, we can find the future dividends for the next four years: $1.10 * (1 + 0.10) + $1.10 * (1 + 0.10)² + $1.10 * (1 + 0.10)³ + $1.10 * (1 + 0.10)⁴ = $1.331, $1.464, $1.61, $1.771, respectively. After the fourth year, the dividend growth rate is estimated to be 3.2%, so we need to calculate the future dividend for the fifth year using the same formula: $1.771 * (1 + 0.032) = $1.827.
Now that we have the future dividends, we can calculate the present value of these dividends using the required rate of return. The present value formula is: PV = FV / (1 + r)ⁿ, where PV is the present value, FV is the future value, r is the required rate of return, and n is the number of years. Plugging in the values, we have:
$1.331 / (1 + 0.12) + $1.464 / (1 + 0.12)² + $1.61 / (1 + 0.12)³ + $1.771 / (1 + 0.12)^4 + $1.827 / (1 + 0.12)⁵ = $3.02
Therefore, the value of the stock today is $3.02 per share.
For a project, an initial cash outlay of $1.4 million is made. In year 1 the expected annual cash flow is $900,000, years 2-5 the expected annual cash flow is $1,000,000 and in year 6 the expected annual cash flow is $1.3 million. A cost of capital of 15% is used. The IRR (internal rate of return) is ________. A. 25.5% B. 12.5% C. 13.5% D. 65.8% E. 40.0%
Answer:
D. 65.8%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year zero = $-1.4 million
Cash flow in year one = $900,000
Cash flow each year from year two to five =$1,000,000
Cash flow in year 6 = $1.3 million.
IRR = 65.8%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Item4 10 points eBookPrintReferences Check my work Check My Work button is now disabledItem 4Item 4 10 points Item Skipped Bishop has a capital balance of $120,000 in a local partnership, and Cotton has a $90,000 balance. These two partners share profits and losses by a ratio of 60 percent to Bishop and 40 percent to Cotton. Lovett invests $60,000 in cash in the partnership for a 20 percent ownership. The goodwill method will be used. What is Cotton’s capital balance after this new investment?
Answer:
Cotton’s capital balance after this new investment is $102,000
Explanation:
In order to calculate Cotton’s capital balance after this new investment we would have to calculate first the goodwill as follows:
Lovett invests $60,000, therefore, Actual value of partnership= $60,000
20%
Actual value of partnership=$300,000
Partnershio capital=$120,000+ $90,000+$60,000
Partnershio capital=$270,000
Therefore, goodwill=$300,000-$270,000
goodwill=$30,000
Therefore, distribution of goodwill would be as follows:
Bishop=$30,000×60%=$18,000
Cotton=$30,000×40%=$12,000
Therefore, Cotton's capital=$90,000+12,000
Cotton's capital=$102,000
Cotton’s capital balance after this new investment is $102,000
Chrome File Edit View History Bookmarks People Window Help Bookmarks CP2-2 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpre The following information applies to the questions displayed below. Performance Company (APC) was incorporated as a private company. The company's accounts Athletic included the following at July 1 Accounts Payable Building Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings $ 4,500 242,000 12,200 348,000 25,500 95,000 28,250 6,050 During the month of July, the company had the following activities a. Issued 2,100 shares of common stock for $210,000 cash. b. Borrowed $53,000 cash from a local bank, payable in two years. c. Bought a building for $210,000; paid $59,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $174,000. e. Purchased supplies for $16,000 on account References Section Break CP2-2 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-2 LO 2-3, LO 2-4, LO 2-5
Answer:h
Explanation:
As an exporter, Delios Trading wants to be paid before a consignment is shipped. Correspondingly, its importer in Japan, Abe Imports, wants to pay only upon receipt of the consignment. These conflicting preferences of Delios Trading and Abe Imports are most likely a manifestation of
Answer:
Lack of trust
Explanation:
One of the key important assets to be managed in a business relationship is trust as it aids effective communication and ease the flow of business transaction.
However , trust is not guaranteed in every potential relationship considering the risks involved . That is the reason it is generally believed that one must work to earn a relationship.
In the situation where there is lack of trust , involved parties in a transaction will attempt to take maximum caution in order to mitigate or avoid the risks attached to the business transaction.
Nefchio is a popular Web site among online gamers. It incorporates interactive and collaborative features to create a richer, more interesting, and more useful experience. In this scenario, Nefchio uses an approach called
Answer:
Web 2.0
Explanation:
Web 2.0: The term "Web 2.0" is described as a specific website that is responsible for allowing the different users to collaborate and interact with one another via "social media dialogue" as creators associated with "user-generated content" in a particular virtual community. However, it tends to contrast the very first generation of "Web 1.0-era" websites in which individuals were considered as limited towards viewing a specific content in a "passive manner".
In the question above, the given statement represents "Web 2.0".
Nefchio, a gaming website, uses an approach known as social networking as part of the Web 2.0 domain, focusing on interactive and collaborative features to enrich the user experience through user-generated content, interoperability, and end-user driven design.
Nefchio, a popular website among online gamers that incorporates interactive and collaborative features to enhance the user experience, employs an approach known as social networking. This method is part of a larger category within technology known as Web 2.0, which focuses on the ability to facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide Web. A site like Nefchio, which enables users to engage in discussions, share information, and collaborate in a more social environment, exemplifies the core values of Web 2.0.
Key features that align with the Web 2.0 approach include user-generated content, interoperability, and end-user driven design. User-generated content allows for a richer and more diverse pool of ideas and experiences. Interoperability ensures that the platform can work seamlessly across different devices and networks, enhancing user accessibility. End-user driven design prioritizes the needs and preferences of the users, making the interface more intuitive and engaging.
Through these features, Nefchio not only provides a platform for gaming discussions and collaborations but also enriches the user experience by fostering a community-oriented environment. This approach is fundamental in creating a dynamic and interconnected online experience that goes beyond traditional, static web pages.
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M Company Balance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $ 3,008 $1,833 Accounts receivable, net 3,055 3,100 Inventories 2,630 3,012 Other current assets 1,820 1,506 Total current assets $10,513 $9,451 Current liabilities $ 4,988 $5,830 (a) Calculate the current ratio and working capital for 3M for 2019 and 2020
Answer:
Current ratio
2019 1.62
2020 2.11
Working capital:
2019 $3,621
2020 $5,525
Explanation:
The current ratio formula =current assets/current liabilities
2019:
current assets is $9451
current liabilities=$5,830
current ratio= $9451/$5,830= 1.62
working capital =current assets-current liabilities=$9451-$5830=$3621
2020
current assets is $10513
current liabilities=$4988
current ratio= $10513/$4988 =2.11
working capital =current assets-current liabilities=$10,513-$4,988=$5525
Ayayai Corp. lends Martinez industries $48000 on August 1, 2022, accepting a 9-month, 6% interest note. If Ayayai Corp. accrued interest at its December 31, 2022 year-end, what entry must it make to record the collection of the note and interest at its maturity date
To record the collection of the note and interest at its maturity, Ayayai Corp. first must calculate and record the accrued interest at the year-end, and then upon maturity, record the collection of the total amount received and credit the Notes Receivable and Interest Revenue.
Explanation:The first step is to calculate the accrued interest on December 31, 2022. The note was issued on August 1, so the time period until December 31 is 5 months. To calculate the accrued interest, use the formula principal x interest rate x time (in years).
For our case: $48000 x 0.06 x (5/12) = $1200. So, Ayayai Corp. must record an accrual of $1,200 in interest receivable on December 31, 2022. This is done with a debit to Interest Receivable and a credit to Interest Revenue.
When the note matures 9 months from August 1, which will be in May 2023, both the principal and the full interest are due. The interest for 9 months would be $48000 * 0.06 * (9/12) = $2160. Thus, upon collection, Ayayai would debit Cash for the total amount received (principal + full interest), debit Interest Receivable for $1200, credit Notes Receivable for the principal amount, and credit Interest Revenue for the remaining $960.
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Mathelesea Corporation has 8,000 shares of 5%, $5 par cumulative preferred stock and 46,000 shares of common stock outstanding. Mathelsea declared no dividends in 2017 and had no dividends in arrears prior to 2017. In 2018%E2%80%8B, Mathelsea declares a total dividend of $53,000. How much of the dividends go to the common%E2%80%8B stockholders? A. $ 49 comma 000$49,000 B. $ 51 comma 000$51,000 C. $ 53 comma 000$53,000 D. %E2%80%8BNone; it all goes to preferred stockholders
Answer:
The correct option is A,$49,000
Explanation:
The share of declared dividends for the common stock shareholders is the total dividends declared in the current minus the preferred stock dividends for current year and prior year because preferred stock is entitled to arrears of dividends(it has cumulative conditional clause attached).
Total dividends declared $53,000
preferred stock dividend(2016) ($2,000)
preferred stock dividend(2017) ($2,000)
common stock share of dividends $49,000
Preferred stock dividend=8000*5%*$5=$2000
The correct option,based on the above analysis,is option A
If a country imports a small fraction of the world's supply, we expect it to face:____________. A. an upward-sloping residual supply curve B. a nearly perfectly elastic, horizontal residual supply curve. C. The type of supply curve it faces cannot be determined. D. a nearly perfectly inelastic, vertical residual supply curve.
Answer:
elastic
Explanation:
If the market price is $16, this firm will a. produce 4 units of output in the short run and exit in the long run. b. produce 5 units of output in the short run and exit in the long run. c. shut down in the short run and exit in the long run. d. produce 5 units of output in the short run and face competition from new market entrants in the long run
This question is incomplete, I got the complete one from google as:
Output Total cost
0 5
1 10
2 12
3 15
4 24
5 40
If the market price is $16, this firm will a. produce 4 units of output in the short run and exit in the long run. b. produce 5 units of output in the short run and exit in the long run. c. shut down in the short run and exit in the long run. d. produce 5 units of output in the short run and face competition from new market entrants in the long run
Answer:
Option D is correct- If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.
Explanation:
The fixed cost is $5, this indicates that when the market price is $16, the marginal cost is also $16.
When the 5th unit is produced, the total revenue received will be $80 while the total cost will be $40. This indicates that there will be a positive economic profit which will bring new firms in the long run.
Hence, option D is the correct answer - If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.
In a situation where the market price is $16, it should be noted that the firm will D. produce 5 units of output in the short run and face competition from new market entrants in the long run.
It should be noted that the fixed cost that's given in the question is $5. The marginal cost is $16. This is the cost that's incurred as a result of an additional purchase made.
Therefore, when the market price is $16, it should be noted that the firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.
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Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current assets Cash $60,000 $30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets $300,000 $245,000 Current liabilities Accounts payable $140,000 $110,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities $200,000 $155,000 During 2019, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Compute the following liquidity measures for 2019.
1. Current ratio
2. Working capital
3. Acid-test ratio
4. Accounts receivable turnover times
5. Inventory turnover times
Answer:
1. $1.5
2. $95,000
3. 5.28
4. $75,000
5. $100,000
Explanation:
The computation of liquidity measures for 2019 is shown below:-
Computation of the different Liquidity Measures
1. Current Ratio = Current assets ÷ Current liabilities
= $300,000 ÷ $200,000
= $1.5
2. Working Capital for 2019 = Current assets ÷ Current liabilities
= $300,000 - $200,000
= $100,000
Working Capital for 2018 = $245,000 - $155,000
= $90,000
Average Working Capital = (Opening Working capital + Closing Working capital) ÷ 2
= ($90,000 + $100,000) ÷ 2
= $95,000
3. Acid Test Ratio = Cash and cash equivalents + Short Term Investment + Current Receivables ÷ Current liabilities
= ($60,000 + $40,000 + $55,000) ÷ $200,000
= 5.28
4. Accounts receivable turnover times
Accounts Receivable Turnover Times = Net Credit Sales ÷ Average Accounts Receivable
= $750,000 ÷ $75,000
= 10
Average Accounts Receivable = ($55,000 + $95,000) ÷ 2
= $75,000
5. Inventory Turnover Times = Cost of Goods Sold ÷ Average Inventory
= $400,000 ÷ $100,000
= 4
Average Inventory = ($110,000 + $90,000) ÷ 2
= $100,000
therefore we have applied the above formula.
The liquidity measures for Booker Corporation in 2019 are: Current ratio of 1.5, Working capital of $100,000, Acid-test ratio of 0.95, Accounts receivable turnover times of 10 and Inventory turnover times of 4.
Explanation:The liquidity measures required to be calculated are:
Current ratio is calculated by dividing total current assets by total current liabilities. As per information provided, current ratio for 2019 is $300,000 / $200,000 = 1.5.Working capital, is calculated by subtracting total current liabilities from total current assets. Working capital for 2019 is $300,000 - $200,000 = $100,000.The acid-test ratio or quick ratio, is calculated by subtracting inventories from current assets and then dividing by current liabilities. It is ($300,000 - $110,000) / $200,000 = 0.95 for 2019.Accounts receivable turnover times is calculated by dividing credit sales by average accounts receivable. Here it is $750,000 / (($55,000 + $95,000)/2) = 10 times in 2019.Inventory turnover times is calculated by dividing cost of goods sold by average inventory. It is $400,000 / (($110,000 + $90,000)/2) = approximately 4 times in 2019.Learn more about Liquidity Measures here:https://brainly.com/question/16752845
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Which of the following is an example of countercyclical monetary policy posing a danger of overreaction? Select all that apply: Loose monetary policy seeking to end a recession goes too far and triggers inflation. Tight monetary policy seeking to reduce inflation goes too far and begins a recession. Tight fiscal policy seeking to reduce inflation goes too far and begins a recession. Loose fiscal policy seeking to end a recession goes too far and triggers inflation.
Question:
Which of the following is an example of countercyclical monetary policy posing a danger of overreaction?
Select all that apply:
A) Loose monetary policy seeking to end a recession goes too far and triggers inflation.
B) Tight monetary policy seeking to reduce inflation goes too far and begins a recession.
C) Tight fiscal policy seeking to reduce inflation goes too far and begins a recession.
D) Loose fiscal policy seeking to end a recession goes too far and triggers inflation.
Answer:
The correct choices are: A) and B)
Explanation:
When the Federal Reserve System wants to curtail a possible recession it tweakes the system to allow more inflow of money into the economy. When money circulation is about to go out of hand, it mops up excess money in the economy by tweaking interest rates among other monetar policy tools.
This cycle may go out of hand if the the Fed miscalculate their actions by either allowing too much money in circulation for a long time or if they mop up too much money at a given period.
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Final answer:
The two examples of counter cyclical monetary policy posing a danger of overreaction are loose monetary policy that triggers inflation and tight monetary policy that causes a recession.
Explanation:
Counter cyclical monetary policy involves measures that the Federal Reserve (Fed) employs to counterbalance economic cycles. There are risks associated with implementing such policies, including the danger of overreaction. The examples provided indicate situations where policy adjustments may inadvertently lead to undesirable economic outcomes.
Loose monetary policy seeking to end a recession may be extreme, causing aggregate demand to spike and triggering inflation.Tight monetary policy with the intention to reduce inflation may overshoot, suppress aggregate demand excessively, and instigate a recession.Fiscal policy, though related, is distinct from monetary policy and involves government spending and tax actions.
You produce widgets for sale in a perfectly com- petitive market at a market price of $10 per wid- get. Your widgets are manufactured in two plants, one in Massachusetts and the other in Connecticut. Because of labor problems in Connecticut, you are forced to raise wages there, so that marginal costs in that plant increase. In response to this, should you shift production and produce more in your Massachusetts plant?
Answer: No.
Explanation:
This is a Perfectly Competitive market and that means that you are a price taker who maximises output at a point where Marginal Revenue equals Marginal Cost ( MR = MC). As costs have gone up, it simply means that for the conditions to be satisfied, you need to produce less at the factory in Connecticut.
That does not mean that you have to produce more at the Massachusetts plant because it is already producing at capacity and increasing the marginal cost would violate the MR=MC rule as you have no control over the price so you cannot change Marginal Revenue. It is therefore better to keep the production level at the Massachusetts plant unchanged.
hare Issuances for Cash Chase, Inc., issued 10,000 shares of $20 par value preferred stock at $50 per share and 8,000 shares of no-par value common stock at $20 per share. The common stock has no stated value. All issuances were for cash. a. Prepare the journal entries to record the share issuances. b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $10 per share. c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $2 per share.
Answer:
a. Prepare the journal entries to record the share issuances.
Dr Cash 500,000 Cr Preferred stocks 200,000 Cr Additional paid in capital - preferred stocks 300,000Dr Cash 160,000 Cr Common stocks 160,000b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $10 per share.
Dr Cash 160,000 Cr Common stocks 80,000 Cr Additional paid in capital - common stocks 80,000c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $2 per share.
Dr Cash 160,000 Cr Common stocks 16,000 Cr Additional paid in capital - common stocks 144,000Answer:
. Prepare the journal entries to record the share issuances.
Dr Cash 500,000
Cr Preferred stocks 200,000
Cr Additional paid in capital - preferred stocks 300,000
Dr Cash 160,000
Cr Common stocks 160,000
b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $10 per share.
Dr Cash 160,000
Cr Common stocks 80,000
Cr Additional paid in capital - common stocks 80,000
c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $2 per share.
Dr Cash 160,000
Cr Common stocks 16,000
Cr Additional paid in capital - common stocks 144,000
Explanation:
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A major reason why it is difficult to lower the barriers to free trade is A. the loss of jobs without any gain of jobs from free trade. B. the uneven distribution of gains and losses from free trade. C. that total benefits are less than total costs from free trade. D. the inability to compensate losers from free trade. E. that the barriers allow us to compete with cheap foreign labor.
Answer:
B) the uneven distribution of gains and losses from free trade.
Explanation:
One of the most important reasons why governments impose trade barriers is to protect domestic jobs (and domestic industries). We are part of a society (country), and society's most important component is people, not money. Generally the economic gains of free trade are larger than the economic losses, but the economic losses hurt the most.
Imagine if no trade barriers actually existed, how many millions of jobs would be lost in the US. Trade barriers are nothing new, the current president didn't invent them. He just incinerated them.
How does a leader tell the people that 10 or 20 million must lose their jobs and probably will not be able to find any similar jobs in the future just because the rest of society will benefit from cheaper products. The lives of 20 million households (50-80 million people) would be destroyed, while 280 million people would benefit.
The amount of harm done to the people that lose their jobs is much greater than any individual benefit.