Answer
Option B. Laura is personally liable as the bank, in good faith, thought she is a general partner
Explanation:
Limited Partnership (LP)
This is Business entity that exists in line with state statutes that gives limited liability to some of its members who called limited partners.
RULPA
This is simply called Revised Uniform Limited Partnership Act. It is the model for Limited Partnership legislation in most states.
Limited Partner
This is a part or member of a limited partnership.it is that individual who is not involved in controlling the business and whose liability is limited to amount invested in the business.
General Partner
It is simply a member in a limited (or general) partnership who controls the business and has unlimited personal liability.
In the above scenario, Laura will be taken as a general partner and will be held personally accountable or liable for the loan, and also along with the general partners of the limited partnership.The rule of RULPA gives the right for a limited partner to be involved in the management of the partnership’s affairs and not losing the limited liability if the limited partner has been formally employed by the partnership to be an executive of the partnership.
All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States purchases 200 tons of Canadian bacon. B Argentina purchases 10,000 French berets. C Mexico purchases 500 Spanish matador outfits. D Germany pays 1 million euro for the services of Swiss accountants. E China purchases $10 billion of United States government securities.
Answer:
E
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Asset income - measures changes in the asset income
this transaction - China purchases $10 billion of United States government securities - would be included in the capital account
list of purpose & uses of assets
Answer:
Explanation:
Assets may be used to store wealth, create income, and reduce future expenses.
Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent.
Hope this helped!!
Which of the following is not true concerning account titles:multiple choiceThere is a wide range of account titles among different types of companies.All companies use exactly the same account titles.There is a small range in account titles regardless of type of company.All companies use different account titles.
Answer:
There is a wide range of account titles among different types of companies
Explanation:
An account title can be regarded as a
unique name that is been assigned or associated to particular account in an accounting system. It is very crucial to use An account title when there is a need for identification of accounts by
accounting staff , this is because the title usually conveys the purpose of that particular account. Some of the account titles that can be used are;
Cash on Hand, Petty Cash Fund, and
Cash in Bank,. In account titles;
✓All companies use exactly the same account titles.
✓There is a small range in account titles regardless of type of company.
✓All companies use different account titles.
Firm ML, a non-corporate taxpayer, exchanged residential rental property plus $15,000 cash for 20 acres of investment land with a $200,000 FMV. ML used the straight-line method to compute depreciation on the rental property.
a. Assuming that ML's exchange was negotiated at arm's length, what is the FMV of the rental property?
b. If the adjusted basis of the rental property is $158,000, compute ML's realized and recognized gain. What is the character of the recognized gain?
c. Compute ML's basis in the 20 acres of investment land.
Answer:
A) $215,000
B) realized gain = $57,000
recognized gain = $15,000
C) $158,000
Explanation:
cash exchanged with the rental property ( boot ) = $15,00
A) Assuming ML's exchange is done at arm's length
FMV of property = $200,000 + $15,000 = $215,000
B) Taking adjusted basis of rental property = $158,000
ML's realized gain = FMV of property at arm's length - adjusted basis
= $215000 - $158000 = $57,000
ML's recognized gain = $15,000
The character of the recognized gain is that it will be lower of the boot amount or realized gain and this is because no gain or loss is registered/recognized in the transaction ( exchange ) except with the boot received
C) Determine ML's basis in the 20 acres of investment land
= $158,000
Bald Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2017 annual report: Minimum operating Amount lease payments (in millions) 2018 $71 2019 46 2020 34 2021 26 2022 20 Total $197 What is the present value of these operating lease payments, assuming a 6% discount rate
Answer:
The present value of these operating lease payments is $172.01 million.
Explanation:
Note: See the attached excel file for the calculation of the net present value (NPV) (in bold red color) of these operating lease payments.
In the attached excel file, the discounting factor for each year is calculated as follows:
Discounting factor = 1 / (100% + Discount rate)^Number of the year
From the attached excel file, we have:
NPV = Net present value = $172.01 million.
Financial information is presented below: Operating expenses $ 45000 Sales returns and allowances 3000 Sales discounts 7000 Sales revenue 160000 Cost of goods sold 96000 Gross Profit would be $64000. $54000. $61000. $67000.
Explanation:
160,000−3,000−96,000=61000
expenses are not taken into account because their not required to find the gross profit.
Financial information is presented below: Operating expenses $ 45000 Sales returns and allowances 3000 Sales discounts 7000 Sales revenue 160000 Cost of goods sold 96000 Gross Profit would be "$64000". The correct option is A.
To calculate the Gross Profit, we use the formula:
Gross Profit = Sales Revenue - Cost of Goods Sold
Given the financial information,
Sales Revenue = $160,000
Cost of Goods Sold = $96,000
Gross Profit = $160,000 - $96,000
Gross Profit = $64,000
Therefore, the correct option is A that is $64,000.
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When a crisis interferes with normal operations, the establishment may need to _____.
hold a press conference
close temporarily or scale back operations
fire all the employees and start over
hire a public relations firm
The unadjusted and adjusted trial balances for American Leaf Company on October 31, 2018, follow:
American Leaf Company
Trial Balances
October 31, 2018
Debit Balances (Unadjusted) Credit Balances (Unadjusted) Debit Balances (Adjusted) Credit Balances(Adjusted)
Cash $16.00 $16.00
Accounts receivable 38.00 44.00
Supplies 10.00 7.00
Prepaid Insurance 22.00 10.00
Land 27.00 27.00
Equipment 41.00 41.00
Accumulated Depreciation-Equipment $7.00 $12.00
Accounts Payable 27.00 27.00
Wages Payable 0.00 2.00
Common Stock 22.00 22.00
Retained Earnings 74.00 74.00
Dividends 10.00 10.00
Fees Earned 70.00 76.00
Wages Expense 23.00 25.00
Rent Expense 6.00 6.00
Insurance Expense 0.00 12.00
Utilities Expense 3.00 3.00 20
Depreciation Expense 0.00 5.00
Supplies Expense 0.00 3.00
Miscellaneous Expense 4.00 4.00
$200.00 $200.00 $191.00 $191.00
Journalize the five entries that adjusted the accounts at October 31, 2018.
Answer:
1. Dr Accounts Receivable $6
Cr Fees Earned $6
2. Dr Supplies Expense $3
Cr Supplies $3
3. Dr Insurance Expense $12
Cr Prepaid Insurance $12
4. Dr Depreciation Expense $5
Cr Accumulated Depreciation—Equipment $5
5. Dr Wages Expense $2
Cr Wages Payable $2
Explanation:
Preparation of the five journal entries that adjusted the accounts at October 31, 2018.
1. Dr Accounts Receivable $6
Cr Fees Earned $6
($44-$38)
(To Accrued fees earned)
2. Dr Supplies Expense $3
Cr Supplies $3
($10-$7)
(To record Supplies used)
3. Dr Insurance Expense $12
Cr Prepaid Insurance $12
($22-$10)
(To record Insurance expired)
4. Dr Depreciation Expense $5
Cr Accumulated Depreciation—Equipment $5
($12-$7)
(To record Equipment depreciation)
5. Dr Wages Expense $2
Cr Wages Payable $2
($2-$0)
(To record Accrued wages)
Companies may use a special bank account solely for the purpose of paying employees, by depositing an amount equal to the total employees' net pay into the account each pay period and drawing the employees' payroll checks on the account. This account is a(n):_________
a) Payroll bank account.
b) Federal depository bank account.
c) Payroll register account.
d) Employee's Individual Earnings account.
e) Employees' bank account.
Answer:
A) Payroll bank account.
Explanation:
A payroll account can be regarded as
separate bank account that is been set up strictly for payroll. To avoid lumping all the expenses of the business in an account, the employee wages will be paid using the payroll bank account.
net wages of the employee will only be deposited in this account.It should be noted that Companies may use a special bank account solely for the purpose of paying employees, by depositing an amount equal to the total employees' net pay into the account each pay period and drawing the employees' payroll checks on the Payroll bank account.
Why is it a good idea to turn off Wi-Fi while using a mobile banking app?
Answer:
The fact that Wi-Fi broadcasts data to anybody in range means that your information could be at risk.
Explanation: 1 That's especially risky if you use Wi-Fi for online banking. Avoiding Wi-Fi altogether is not realistic. It's probably not even practical to save banking sessions for when you're at home or on a wired connection.
Gilberto Company currently manufactures 75,000 units per year of one of its crucial parts. Variable costs are $2.45 per unit, fixed costs related to making this part are $85,000 per year, and allocated fixed costs are $72,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.65 per unit guaranteed for a three-year period.
Required:
Calculate the total incremental cost of making 75,000 and buying 75,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
$2,000
Explanation:
The total incremental cost of making 75,000 and buying 75,000 units.
Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $2 million per year to beneficiaries. The yield to maturity on all bonds is 16%. a. If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is four years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation
Solution :
The PV "perpetual" obligation of the firm = [tex]$\frac{\$ 2 \text{ million}}{0.16}$[/tex]
= $ 12.5 million
Also based on duration of the perpetuity, duration of this obligation = [tex]$\frac{1.16}{0.16}$[/tex]
= 7.25 years
Let [tex]$w$[/tex] be the [tex]$\text{weight}$[/tex] on the [tex]$5$[/tex] year maturity bond, which has a duration of [tex]$4$[/tex]years. Then :
[tex]$w \times 4 +(1-w) \times 11 = 7.25$[/tex]
[tex]$w=0.5357$[/tex]
Therefore,
[tex]$0.5357 \times \$ 12.5 = \$ 6.7$[/tex] million in the [tex]$5$[/tex] year bond
[tex]$0.4643 \times \$12.5=\$5.8$[/tex] million in the [tex]$2$[/tex] year bond.
Therefore, the total invested amounts to $ [tex]$(6.7+5.8)$[/tex] million = [tex]$\$12.5$[/tex] million, which fully matches the funding needs.
A worker may prefer to be treated as an independent contractor (rather than an employee) for which of the following reasons:____________
a. Work-related expenses of an independent contractor are deductible for AGI.
b. All of the self-employment tax is deductible for income tax purposes.
c. A Schedule C does not have to be filed.
d. Avoids the overall limitation (50%) as to business meals.
e. None of these choices are correct.
Answer: a. Work-related expenses of an independent contractor are deductible for AGI.
Explanation:
Independent Contractors are allowed to deduct the expenses they incur while contracting, from the AGI (Annual Gross Income).
This therefore reduces the taxes that the contractors have to pay unlike with employees who will have to pay income tax and cannot deduct much from work.
Stellan Manufacturing is considering the following two investment proposals:
Proposal X
Proposal Y
Investment
$730,000
$504,000
Useful life
5 years
4 years
Estimated annual net cash inflows received at the end of each year
$156,000
$100,000
Residual value
$50,000
$0
Depreciation method
Straightminus
line
Straightminus
line
Annual discount rate
10%
9%
Compute the present value of the future cash inflows from Proposal Y.
Present value of an ordinary annuity of $1:
8%
9%
10%
1
0.926
0.917
0.909
2
1.783
1.759
1.736
3
2.577
2.531
2.487
4
3.312
3.240
3.170
5
3.993
3.809
3.791
6
4.623
4.486
4.355
A.
$252,000
B.
$292,320
C.
$268,884
D.
$324,000
Answer:When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...
Explanation:
Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.
Sales revenue $334,910
Cost of goods sold 149,030
Selling and administrative expenses 54,000
Gain on sale of plant assets 32,710
Unrealized gain on available-for-sale debt investments 9,080
Interest expense 6,360
Loss on discontinued operations 11,260
Dividends declared and paid 4,660
Compute the following:
(a) Income from operations -
(b) Net income -
(c) Comprehensive income
(d) Retained earnings balance at December 31, 2020 -
Answer:
a. $131,880
b. $167,310
c. $156,050
d. $151,390
Explanation:
(a) Income from operations
Income from Operations is Income resulting from Primary Trading Activities of the Company.
Income from Operations = Gross Profit + Operating Income - Operating Expenses
where,
Gross Profit = Sales - Cost of Goods Sold
= $334,910 - $149,030
= $185,880
thus,
Income from Operations = $185,880 - $54,000 = $131,880
(b) Net income
Income resulting from Primary and Secondary Trading Activities of the the Company.
Net income = Income from Operations + Non Operating Income - Non Operating Expenses
= $131,880 + $32,710 + $9,080 - $6,360
= $167,310
(c) Comprehensive income
Income from both Continuing and Non - Continuing Activities.
Comprehensive income = Net income + Non - Continuing Activities
= $167,310 - $11,260
= $156,050
(d) Retained earnings balance at December 31, 2020
The Income remaining after distributions to shareholders have been made.
Retained earnings = Comprehensive income - Dividends
= $156,050 - $4,660
= $151,390
A progressive tax is a tax that:
A. Requires you to pay less money in taxes when you have more income.
B. Requires everyone to pay the same tax rate.
c. Only applies to people who make more than $150,000 per year.
D. Requires people who make more money to pay a larger percentage of their income in taxes.
Answer:
I’m pretty sure it’s B.
Explanation:
^ I said pretty sure
3
Hame and explain
of skills that should be possess by an entrepreneur
Answer:
1. Curiosity. Great entrepreneurs are tasked with identifying new problems, identifying potential niche opportunities, refactoring their existing business processes, and innovating. This necessitates a passion for various fields of study and business cases that are outside of one's comfort zone.
2. Time management. Prioritization, milestone definition, execution, and iteration are all critical. None of this would be possible without the proper project management and time allocation methodologies in place to complete the work.
3. Strategic thinking. Learning to break down a problem to its simplest components and identify growth opportunities. Inventive problem-solving and spotting the low-hanging fruit. Defining an MVP's scope and testing concepts in a short amount of time and on a tight budget.
Caldwell Corporation is considering an investment proposal that will require an initial outlay of $816,000 and would yield yearly cash inflows of $212,000 for nine years. The company uses a discount rate of 10%. What is the NPV of the investment?
Present value of an ordinary annuity of $1:
8%
9%
10%
1
0.926
0.917
0.909
2
1.783
1.759
1.736
3
2.577
2.531
2.487
4
3.312
3.24
3.17
5
3.993
3.89
3.791
6
4.623
4.486
4.355
7
5.206
5.033
4.868
8
5.747
5.535
5.335
9
6.247
5.995
5.759
A.
$251,667
B.
$371,000
C.
$408,000
D.
$404,908
Answer:
623
Explanation:
because I guessed and 816,000-212,000= 604,000
You own shares of Somner Resources' preferred stock, which currently sells for per share and pays annual dividends of $ per share. If the market's required yield on similar shares is percent, should you sell your shares or buy more?
Answer:
You should buy more shares
Explanation:
The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.
You own 300 shares of Somner Resources' preferred stock, which currently sells for $39 per share and pays annual dividends of $5.50 per share. If the market's required yield on similar shares 12% is percent, should you sell your shares or buy more?
Solution as mentioned below:
First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.
Value of preferred stock = 5.50 / 12%
Value of preferred stock = $45.83
Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.
“It’s great to listen to the customer when you are designing your product, but it’s just not practical in pricing. All the customers have to say is that they want lower prices. If you want me to increase profits, I can’t very well listen to that!”
a. What should the marketing director make of this response?
Answer:
189038¥$
Explanatio
first play attention in class
The candidate hasn't fully understood the marketing strategy of the company
What is marketing?Marketing refers to the actions of a company in order to promote buying or selling of the company’s product, as well as creating a brand image of its product. Marketing has become a vital part of total’s world, where everything is connected via the internet and social media. New fields like Digital Marketing, Social Media Marketing have propped up for the marketing of the products.
The marketing director while appreciating this response should know the person responding hasn't been fully aware of the marketing strategy. He should make the candidate understand how much vital it is to take the opinion of the customers. Even, the company's main focus is on customers' responses and needs.
In today’s economy, a couple of viral videos against the company by genuine customers can ruin the whole image of the company. Also, customers might not necessarily want a lower-priced product in today’s age of show-offs. The customers might be wanting a product of distinction among his/her peers to stand out.
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The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.
Required Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
October November December
Budgeted S&A Expenses
Equipment lease expense $7,500 $7,500 $7,500
Salary expense 8,200 8,700 9,000
Cleaning supplies 2,800 2,730 3,066
Insurance expense 1,200 1,200 1,200
Depreciation on computer 1,800 1,800 1,800
Rent 1,700 1,700 1,700
Miscellaneous expenses 700 700 700
Total operating expenses $23,900 $24,330 $24,966
Schedule of Cash Payments for S&A Expenses
Equipment lease expense
Prior month’s salary expense, 100%
Cleaning supplies
Insurance premium
Depreciation on computer
Rent
Miscellaneous expenses
Total disbursements for operating expenses $19,900 $20,830 $21,666
b. Salaries payable
c. Prepaid insurance
Answer:
Kanosh Cleaning Services
a. Schedule of Cash Payments for S&A Expenses
October November December
Equipment lease expense $7,500 $7,500 $7,500
Prior month’s salary expense, 100% 0 8,200 8,700
Cleaning supplies 2,800 2,730 3,066
Insurance premium 7,200 0 0
Depreciation on computer 0 0 0
Rent 1,700 1,700 1,700
Miscellaneous expenses 700 700 700
Total disbursements for operating expenses $19,900 $20,830 $21,666
b. Salaries payable = $9,000
c. Prepaid insurance = $3,600
Explanation:
a) Data and Calculations:
October November December
Budgeted S&A Expenses
Equipment lease expense $7,500 $7,500 $7,500
Salary expense 8,200 8,700 9,000
Cleaning supplies 2,800 2,730 3,066
Insurance expense 1,200 1,200 1,200
Depreciation on computer 1,800 1,800 1,800
Rent 1,700 1,700 1,700
Miscellaneous expenses 700 700 700
Total operating expenses $23,900 $24,330 $24,966
Schedule of Cash Payments for S&A Expenses
October November December
Equipment lease expense $7,500 $7,500 $7,500
Prior month’s salary expense, 100% 0 8,200 8,700
Cleaning supplies 2,800 2,730 3,066
Insurance premium 7,200 0 0
Depreciation on computer 0 0 0
Rent 1,700 1,700 1,700
Miscellaneous expenses 700 700 700
Total disbursements for operating expenses $19,900 $20,830 $21,666
b. Salaries payable = $9,000
c. Prepaid insurance = $3,600 ($7,200 - $3,600)
a. See the attached photo for the complete schedule of cash payments for S&A expenses.
Under the complete schedule of cash payments for S&A expenses in the attached photo, the following are determined as follows:
Insurance premium paid in October = Monthly insurance expense * 6 months = $1,200 * 6 months = $7,200
Depreciation on computer = This is zero for each of the month because depreciation is not a cash expense.
b. Salaries payable = Salary expense for December = $9,000
c. Prepaid insurance = 6 months insurance premium paid – (October insurance expense + November insurance expense + December insurance expense) = $7,200 – ($1,200 + $1,200 + $1,200) = $7,200 - $3,600 = $3,600
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On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use of manufacturing equipment for the 5 year period beginning on December 1, 2018. X Corp. paid $100,000 for the 5-year period on December 1, 2018. How much, if any of the payment can X Corp. deduct in 2018
Answer: $20000
Explanation:
Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.
Therefore, the payment that X Corp. can deduct in 2018 will be:
= $100,000 / 5
= $20000
At December 31, 2020, Carter Company had 450,000 shares of common stock issued and outstanding, 350,000 of which had been issued and outstanding throughout the year and 100,000 of which were issued on September 1, 2020. Net income for the year ended December 31, 2020, was $1,160,000. What should be Twin Rivers' 2020 earnings per common share, rounded to the nearest penny
Answer:
$3.03
Explanation:
Calculation to determine What should be Twin Rivers' 2020 earnings per common share,
Using this formula
Earnings per common share=
Net Income for 2020/Weighted Average Shares Outstanding
Let plug in the formula
Earnings per common share=$1,160,000/ [(350,000 x 8/12) + (450,000 × 4/12)]
Earnings per common share=$1,160,000/(233,333+150,000)
Earnings per common share=$1,160,000/383,333
Earnings per common share= $3.03
Therefore What should be Twin Rivers' 2020 earnings per common share is $3.03
The following options it gives me are
There would be a shortage of 2,000 bags of popcorn and consumers would be happy with the quality
There would be a shortage of 2,000 bags and consumers would be unhappy with the quality
There would be a surplus of 2,000 bags and consumers would be happy with the quality
There would be a shortage of 2,000 bags and producers would be happy with the law
There would be a surplus of 2,000 bags and producers would be happy with the law
Answer:
There would be a surplus of 2,000 bags, and producers would be happy with the law.
Explanation:
Unlike a price floor that prevents the price of movie theater popcorn from falling below the equilibrium price level of $15, a price ceiling of $5 prevents the price of movie theater popcorn from rising above $20. When a price ceiling is set above the equilibrium price, the quantity supplied exceeds the quantity demanded by 2,000 packets of popcorn, and there will be a surplus supply.
Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 45,000 direct labor hours during 2013. The following estimates are made in setting the predetermined overhead rate for 2013:
One job that Renaissance Creations completed during 2013 was a stained glass window of the Pierce family crest that took 125 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $890. Scrap that was generated from this job was sold for $93.
a. What was the predetermined overhead rate (set on the basis of direct labor hours) for 2013?
b. What was the cost of the Pierce stained glass window?
c. Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.
d. Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?
Answer:
hello your question has some missing information attached below is the missing information
answer :
a) $7
b) $4265
c) attached below
d) $4192
Explanation:
a) determine the predetermined overhead rate
= Total estimated overhead / estimated direct labor hour
Total estimated overhead = $315,000
estimated direct labor hour = 45,000
hence predetermined overhead rate = 315,000 / 45,000 = $7
b) calculate the cost of the Pierce stained glass window
Direct material cost = $890
number of labor hours = 125
direct labor cost = $20 per hour
predetermined overhead rate = $7
∴cost of glass window = [ ( 890 + ( 125 * 20 ) + ( 125 * 7 ) ] = $4265
c) Journal entry used to record sell of scrap
Account name
cash $93
manufacture overhead $93
d) assuming only some jobs generate scrap
first we will calculate the overhead rate per hour
= ( $297000 + $25200) / 45,000 = $7.16
∴ Total cost of pierce stained glass window
= [ (direct material cost + number of labor hours ) + number of labor hours ( predetermined overhead rate ) ] - $93
= $4285 - $93 = $4192
Miscellaneous costs associated with the purchase of new equipment? include:
Insurance costs before the equipment is ready for use $3,000
Maintenance costs before the equipment is ready for use 700
Insurance costs after the equipment is placed into service 1,400
Cost of trial run 800
Training costs for employees to learn how to use equipment 400
What is the amount assigned to the new? equipment?
A. $4,200.
B. $4,500.
C. $4,900.
D. $6,300.
Answer:
C. $4,900.
Explanation:
Determining the amount assigned to the new equipment
Details Amount
Insurance costs before the equipment is ready for use $3,000
Add: Maintenance costs before the equipment is ready for use $700
Add: Cost of trial run $800
Add: Training costs for employees to learn how to use equipment $400
Total costs assigned to the new equipment $4,900
So, the correct options is option c.
Farmer Brown grows Number 1 red corn and would like to hedge the value of the coming harvest. However, the futures contract is traded on the Number 2 yellow grade of corn. Suppose that yellow corn typically sells for 90% of the price of red corn. If he grows 180,000 bushels, and each futures contract calls for delivery of 5,000 bushels, how many contracts should Farmer Brown buy or sell to hedge his position
Answer:
40 contracts
Explanation:
Calculation to determine how many contracts should Farmer Brown buy or sell to hedge his position
First step is to calculate how much The farmer must sell forward
Farmer must sell forward=180,000∗(1/0.90)
Farmer must sell forward= 200,000bushels of yellow corn.
Now let calculate the requires selling
Requires selling=200,000/ 5,000 bushels
Requires selling =40 contracts.
Therefore how many contracts should Farmer Brown buy or sell to hedge his position is 40 contracts.
Break-even analysis can be used by a firm that produces more than one product, but:
a. the results are estimates, not exact values.
b. the firm must allocate some fixed cost to each of the products.
c. each product has its own break-even point.
d. the break-even point depends upon the proportion of sales generated by each of the products.
e. None of these statements is true.
Answer:
d. the break-even point depends upon the proportion of sales generated by each of the products.
Explanation:
Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.
Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Break-even analysis can be used by a firm that produces more than one product, but the break-even point depends upon the proportion of sales generated by each of the products.
Crypton Electronics has a capital structure consisting of percent common stock and percent debt. A debt issue of $ par value, percent bonds that mature in years and pay annual interest will sell for $. Common stock of the firm is currently selling for $ per share and the firm expects to pay a $ dividend next year. Dividends have grown at the rate of percent per year and are expected to continue to do so for the foreseeable future. What is Crypton's cost of capital where the firm's tax rate is percent?
Answer:
A. After-cost of debt 4.20%
B. Cost of common equity 12.15%
C. Cost of capital 7.02%
Explanation:.
A. Calculation to determine the After-cost of debt
After-cost of debt =RATE(15,5.8%*1000,-980,1000)*(1-30%)
After-cost of debt =4.20%
Therefore After-cost of debt is 4.20%
b) Calculation to determine cost of common equity
Cost of common equity=2.17/29.12+4.7%
Cost of common equity=12.15%
Therefore Cost of common equity is 12.15%
c) Calculation to determine cost of capital
Cost of capital=(4.20%*63%)+(12.15%*36%)
Cost of capital=7.02%
Therefore Cost of capital is 7.02%
Mann Co. is preparing an Excel spreadsheet for its 5-year, 6%, $400,000 installment notes. The notes were issued on January 1 for $421,236. Installment payments are payable each December 31. A portion of the spreadsheet appears as follows: A B C D E 1 Effective rate: 0.06 2 Cash payments: 100,000 3 Term to maturity in years: 5 4 5 Period Cash Payment Interest Expense Change in Balance Outstanding Balance 6 0 7 1 8 2 What formula should Mann use in cell E8 to calculate the outstanding balance (book value) of the notes after the second interest
Answer:
The correct formula that Mann should use in cell E8 is =E7-D8.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached excel file for the complete question with the sorted data.
The explanation of the answer is now given as follows:
The correct formula that Mann should use in cell E8 is =E7-D8. If this formula is used, it will calculate the outstanding balance (book value) of the notes after the second interest for period 2.
Additional Note:
Although this is not part of the requirement of the question, but it is provided for you to assist your further in your learning.
Note: See the below the attached excel file for the full answer and calculations of all the cells required for the amortization schedule.
For example, using the correct formula =E7-D8 in cell E8 gives $267,301 (in red color).