These are true or false!! Please help!!
1. A need is something that you desire to have because someone else has one.
2. Food, clothing, and shelter are examples of basic wants.
3. One of the problems in economics is that wants are unlimited.
4. Goods and services are produced through the use of economic resources.
5. There are only two kinds of economic resources: human and capital.
6. Labor is another name for human resources.
7. Some resources, such as clean air and water, are limited.
8. Scarcity is a problem that is faced by individuals and businesses but not by government
9. Economic decision making is important to businesses and governments but not to
individuals.
10. Economic decision making is a process requiring four important steps.
Answer:
I'm just going to write T-True n F)-False
1 F-
2 T
3 T
4 T
5 F-
6 T
7 T
8 T
9 F-
10 I'm sorry i don't know about this
Journalize the transactions. ( This information relates to Cheyenne Real Estate Agency. Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $42,720. 3 Buys office furniture for $3,740, on account.
Answer and Explanation:
The journal entry is given below:
Oct 1
Cash Dr $31,770
To Common stock $31,770
(Being exchange for the common stock is recorded)
Here cash is debited as it increased the asset and credited the common stock as it also increased the equity
Oct 2
No journal entry is required
Oct 3
Office furniture Dr $3,740
To Account payable $3,740
(Being office furniture purchased on an account)
Here office furniture is debited as it increased the asset and credited the account payable as it also increased the liabilities
Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. a. Amber Corporation donated inventory of clothing (basis of $24,000, fair market value of $30,000) to a qualified charitable organization that operates homeless shelters. $fill in the blank 9a9067069fa000e_1
Answer:
$27,000
Explanation:
Computation for the charitable contribution deduction
Using this formula
Charitable contribution deduction = (Adjusted basis )+[ 50% (Fair Value – Adjusted Basis)]
Let plug in the formula
Charitable contribution deduction= 24,000 + [50% (30,000 – 24,000)]
Charitable contribution deduction= 24,000+ (50%*6,000)
Charitable contribution deduction= 24,000+3,0000
Charitable contribution deduction = 27,000
Therefore the charitable contribution deduction will be $27,000
Carter Company has $800,000 of 6% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during the last two years, 2020 and 2019. As of December 31, 2021, the Board of Directors has decided to distribute $420,000 in cash dividends and needs help in determining the allocation between Preferred Stockholders and Common Stockholders. Assuming the preferred stock is noncumulative and nonparticipating, how much of the $420,000 will be allocated to Common Stockholders
Answer and Explanation:
The computation of the allocation done between the preferred and common stockholder is shown below
Given that
Total dividend for current year = $420,000
Less: preference dividend -$40,000 ($800,000 × 5%)
Balance for common stock $380,000
The $40,000 should be first distributed to the preference stockholder and the remaining would be allocated to the common stockholder
At the end of 2016, burger food truck The Patty Wagon’s preliminary trial balance indicated a current ratio of 1.20. Management is contemplating paying some of its accounts payable balance before the end of the fiscal year. Explain the effect this transaction would have on the current ratio. Would your answer be the same if the preliminary trial balance indicated a current ratio of 0.8?
Answer:
No
Explanation:
Lets assume that for current ratio to be 1.2, the current assets were $120000 and Current liabilities were $100000. [120000 / 100000 = 1.2]
Now, if say $20000 of accounts payable were paid, the new current ratio would be:
= ($120000 - $20000) / ($100000 - $20000)
= $100000 / $80000
= 1.25.
Hence, the current ratio would Increase and this should be encouraged.
If current ratio were 0.8, (Current Assets $ 80000 and Current Liabilities $ 100000, 80000 / 100000 = 0.8] and $ 20000 were paid, the new current ratio would be:
= ($80000 - $20000) / ($100000 - $20000)
= $60000 / $80000
= 0.75
Hence, the current ratio would Decrease. This should be discouraged.
Conclusion: No, the answer would not be the same if current ratio were 0.8 instead of 1.2.
What is the value of a building that is expected to generate fixed annual cash flows of $13,800 every year for a certain amount of time if the first annual cash flow is expected in 3 years from today and the last annual cash flow is expected in 8 years from today and the appropriate discount rate is 6.8 percent
Answer:
the present value is $58,026
Explanation:
The computation of the value of the building is shown below
Present value = Cash flows × Present value of discounting factor( interest rate%,time period)
= $13,800 ÷ 1.068^3 + $13,800 ÷ 1.068^4 + $13,800 ÷ 1.068^5 + $13,800 ÷ 1.068^6 + $13,800 ÷ 1.068^7 + $13,800 ÷ 1.068^8
= $58,026
Hence, the present value is $58,026
The adjusted trial balance of Tahoe Company at the end of the accounting year, December 31, 2016, showed the following: Account Titles Adjusted Trial Balance Debits Credits Cash $20,000 Machinery 90,000 Accumulated depreciation $16,000 Accounts payable 7,000 Capital stock 20,000 Retained earnings 59,000 Service revenue 40,000 Interest expense 4,000 Operating expenses 17,000 Depreciation expense 11,000 Total $142,000 $142,000 Required: B. Calculate the 2016 ending balance in retained earnings.
Answer:
$67,000
Explanation:
Retained Earnings = Opening Balance + Profit for the Year - Dividends
where,
Profit for the Year = Sales - Expenses
= $40,000 - (4,000 + 17,000 + 11,000)
= $8,000
therefore,
Retained Earnings = $59,000 + $8,000 = $67,000
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you. a. If the company has 520,000 shares outstanding and the stock currently sells for $36, how much will it cost you to buy a seat if the company uses straight voting
Answer: $9360036
Explanation:
If the straight voting method is used by the company, the number of shares that's required for the person would be:
= 520,000/2 + 1
= 260,001
Then, the total cost that'll be required to purchase a seat will then be:
= 260001 × $36
= $9360036
4. Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particular case, the amount owed will go up by 8 percent per year for four years. The lender then will require Busby to pay off the loan over 12 years at 11 percent interest. What will his annual payment be
Answer:
Tom Busby
His annual payment will be:
= $4,091.64
Explanation:
a) Data:
Loan = $20,000
Interest on loan for 4 years = 8% per annum
Amount of loan after 4 years = $27,200 ($20,000 * 1.360)
Payment period = 12 years
Interest rate during payment period = 11%
b) From online finance calculator:
You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.
Monthly Payment $340.97
Annual Payment $4,091.64
Time Required to Clear Debt 12.00 years
Total of 144 or 12 Payments = $49,099.25
Total Interest $21,899.25
On January 1, 2020, Scottsdale Company issued its 11% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued for $$3,385,058 to yield 9%. Scottsdale uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. The 12/31/23 Premium on Bond Payable balance is:
Answer:
$269,153
Explanation:
Dr Cash 3,385,058
Cr Bonds payable 3,000,000
Cr Premium on bonds payable 385,058
premium amortization year 1 = ($3,385,058 x 9%) - $330,000 = $304,655 - $330,000 = -$25,345
premium amortization year 2 = ($3,359,713 x 9%) - $330,000 = -$27,626
premium amortization year 3 = ($3,332,087 x 9%) - $330,000 = -$30,112
premium amortization year 4 = ($3,301,975 x 9%) - $330,000 = -$32,822
premium's balance = $269,153
At the second week in March, job 710 has an accumulated beginning cost of $37,800. A) $9000 of direct materials were used. B) 300 hours of direct labor were charged to the job at $40 per hour C) Manufacturing Overhead was charged to the job at the rate of $40 per machine hour 160 machine hours were used. The entire Finished Goods Inventory was sold . Transfer the appropriate number to the Costs of Goods sold.
Answer:
Costs of Goods sold = $65,200
Explanation:
Since the entire Finished Goods Inventory was sold, thhis implies that there is no accumulated ending cost.
The Costs of Goods sold can be calculated as follows:
Accumulated beginning cost = $37,800
Direct materials were used = $9,000
Direct labor = Number of direct labor hours * Labor cost per hour = 300 * $40 = $12,000
Manufacturing Overhead = Number of machine hours * Cost per machine hour = 160 * $40 = $6,400
Therefore, we have:
Costs of Goods sold = Accumulated beginning cost + Direct materials were used + Direct labor + Manufacturing Overhead = $37,800 + $9,000 + $12,000 + $6,400 = $65,200
A firm has beginning retained earnings of $6,880 and ending retained earnings of $7,430. What is the amount of dividends paid if the firm earned a net income of $5,130
Answer:
the dividend paid is $4,580
Explanation:
The computation of the amount of the dividend paid is as follows:
As we know that
Ending retained earning balance = Beginning retained earning balance + net income - dividend paid
$7,430 = $6,880 + $5,130 - dividend paid
So, the dividend paid is $4,580
Steve Prince and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Prince of $139,200. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to Prince and Stevens, 1:2. Prince and Stevens had $55,520 and $97,560, respectively, in their January 1 capital balances. Net income for the year was $240,000. How much is distributed to Prince and Stevens
Answer:
Amount distributed to Prince = $33,914.53
Amount distributed to Steven = $66,885.47
Explanation:
Prince’s interest on capital = Prince’s January 1 capital balances * 7% = $55,520 * 7% = $3,886.40
Stevens’ interest on capital = Stevens’ January 1 capital balances * 7% = $97,560 * 7% = $6,829.20
Net income balance = Net income - Annual salary allowance to Prince - Prince’s interest on capital - Stevens’ interest on capital = $240,000 - $139,200 - $3,886.40 - $6,829.20 = $90,084.40
Prince’s share of net income balance = Net income balance * (1 / 3) = $90,084.40 * (1 / 3) = $30,028.13
Stevens’ share of net income balance = Net income balance * (2 / 3) = $90,084.40 * (2 / 3) = $60,056.27
Therefore, the amount distributed to Prince and Stevens can now be calculated as follows:
Amount distributed to Prince = Prince’s interest on capital + Prince’s share of net income balance = $3,886.40 + $30,028.13 = $33,914.53
Amount distributed to Steven = Stevens' interest on capital + Prince’s share of net income balance = $6,829.20 + $60,056.27 = $66,885.47
you are the accounts receivable clerk for fast and friendly shipping . the friendly shipping the balance of the accounts receivable account is $25,000 for six months you have been trying to collect the amount owned by three companies: ABC company, $450; XYZ company, $500; and nice try company, $350. these accounts are still unpaid. your supervisor asked you to write off these accounts using the direct write off method. what is the balance of accounts receivable after you write off these accounts as uncollective?
Answer:
Thats a lot of money
Explanation:
can I have some
Assume sales are $14,570, cost of goods sold is $3,820, depreciation expense is $410, interest paid is $730, selling and general expenses are $960, dividends paid are $1,170, and the tax rate is 21 percent. What is the addition to retained earnings
Answer:
Amount added to retained earnings $5,663.50
Explanation:
The computation of the addition to the retained earning is shown below:
Sales $14,570
Less: Cost of goods sold -$3,820
Less: Depreciation -$410
Less: Interest paid -$730
Less: Selling and administration expenses -$960
Profit Before Tax $8,650
Less: Tax at 21% -1,816.50
Profit After tax $6,833.50
Less: Dividend paid -$1,170
Amount added to retained earnings $5,663.50
g widgets inc plans to produce 8000 widgets during the upcoming year. each widget requires four direct labor hours at 25 per hour and 110 in direct material costs .... compute the predetermined overhead rate per direct labor hour
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
Giving the following information:
Production= 8,000 units
Direct labor hours= 4*8,000= 32,000 hours
To calculate the predetermined overhead rate, we need the estimated overhead costs. We don't have the number, but I will provide a fake number, and determine the overhead rate.
Estimated overhead costs= $1,500,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,500,000 / 32,000
Predetermined manufacturing overhead rate= $46.875 per direct labor hour
Sandra Corporation has provided the following information for its most recent year of operation: Revenues earned were $90,000, of which $9,000 were uncollected at the end of the year. Operating expenses incurred were $40,000, of which $9,000 were unpaid at the end of the year. Dividends declared were $13,000, of which $6,000 were unpaid at the end of the year. Income tax expense is $19,000. What is the amount of net income reported on Sandra's income statement
Answer:
the net income that should be reported on the income statement is $31,000
Explanation:
The computation of amount of net income is shown below:
Revenue $90,000
Less Operating Expenses -$40,000
Profit Before Tax -$50,000
Less Taxes -$19,000
Net Income $31,000
Hence, the net income that should be reported on the income statement is $31,000
You've collected the following information about a company: Assets Liabilities and Equity Cash 13,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities Inventory 32,000 Long-term debt 95,000 Current assets Total liabilities Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings Fixed assets Equity Total assets Total liab. & equity Attempt 1/10 for 10 pts. Part 1 What are total assets? 165000 Correct ✓ Total assets are the sum of current and fixed assets. Assets Liabilities and Equity Cash 13,000 Accounts payable 16,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable 4,000 Current liabilities Inventory 32,000 Long-term debt 95,000 Current assets 51,000 Total liabilities Machines 34,000 Paid-in capital 20,000 Real estate 80,000 Retained earnings Fixed assets 114,000 Equity Total assets 165,000 Total liab. & equity Total assets = Current assets + Fixed assets = 51,000 + 114,000 = 165,000
Answer:
The answer is "$228,000"
Explanation:
Formula:
[tex]\text{Total Assets = Current Assets + Fixed Assets}[/tex]
[tex]= [\$ 13,000 + \$ 2,000 + \$ 4,000 + \$ 95,000] + [\$ 34,000 + \$ 80,000]\\\\= [\$ 114,000] + [\$ 114,000]\\\\= \$ 228,000[/tex]
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. During the year, net credit sales totaled $600,000, and the estimated bad debt percentage is 2%. The allowance for uncollectible accounts had a credit balance of $5,600 at the beginning of the year and $4,700, after adjusting entries, at the end of the year. What is the amount of accounts receivable written off during the year
Answer:
$12,900
Explanation:
Calculation for the amount of accounts receivable written off during the year
Beginning Balance $5,600
Add Bad debt expense $12,000
(2% x $600,000)
Less End-of-year balance ($4,700)
Accounts receivable written off $12,900
($5,600+$12,000+$4,700)
Therefore the amount of accounts receivable written off during the year will be $12,900
Make-or-Buy Decision
Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:
Direct materials $16
Direct labor 20
Factory overhead (25% of direct labor) 5
Total cost per unit $41
If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 5% of the direct labor costs.
a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0". If required, round your answers to two decimal places. Use a minus sign to indicate a loss.
Differential Analysis
Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2)
September 30
Make Carrying Case (Alternative 1) Buy Carrying Case (Alternative 2) Differential Effect on Income (Alternative 2)
Sales price $ $ $
Unit costs:
Purchase price
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Income (loss) $ $ $
b. Assuming there were no better alternative uses for the spare capacity, it would (Be advisable, Not be advisable) to manufacture the carrying cases. Fixed factory overhead is(Relevant, Irrelevant) to this decision.
Answer:
A. Make carrying case(Alternative 1) $41.00
Buy carrying case (Alternative 2)$44.00
Differential effect on net income (Alternative 2)($3.00)
B. Assuming there were no better alternative uses for the spare capacity, it would BE ADVISABLE to manufacture the CARRYING CASES. Fixed overhead is IRRELEVANT to this decision.
Explanation:
A. Preparation of a Differential Analysis
DIFFERENTIAL ANALYSIS
Make carrying case Buy carrying case
(Alternative 1) (Alternative 2)
Alternative 1 Alternative 2 Differential effect on net income (Alternative 2)
Sales price
$0.00 $0.00 $0.00
Purchase Price
$0.00 $40.00 ($40.00)
Direct materials
$16.00 $0.00 $16.00
Direct labor
$20.00 $0.00 $20.00
Variable manufacture overhead (20*5%=$1.00)
$1.00 $0.00 $1.00
Fixed manufacture overhead($5.00-$1.00) $4.00 $4.00 $0.00
Income(Loss)
$41.00 $44.00 ($3.00)
Based on the above calculation Alternative 1 which is carrying case should be Choose by the Company .
B. Therefore Assuming there were no better alternative uses for the spare capacity, it would BE ADVISABLE to manufacture the CARRYING CASES. Fixed overhead is IRRELEVANT to this decision.
Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land improvements are appraised at $73,500; and a building is appraised at $171,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer and Explanation:
a. The allocation of the total cost among the three assets is given below:
(a) (b) (a × b)
Appraise value Total appraised Total cost of Apportioned
value cost
Percentage acquisition
Land $245,000 50% $342,225 $171,112.50
Land
improvements $73,500 15% $342,225 $51,333.75
Building $171,500 35% $342,225 $119,778.75
Total $490,000
b. The journal entry to record the purchase is given below:
Land $171,112.50
Land improvements $51,333.75
Building $119,778.75
To Cash $342,225
(To record the purchase)
Here the asset is debited as it rises the assets and cash is credited as it reduced the assets
The present value of a zero-interest-bearing note given for property, goods, or services should be measured by A : using the prime interest rate to discount the note. B : the book value of the property on the seller's books the interest rate on similar notes being offered in the market place for similar property, goods, or services. C : the fair value of the property, goods, or services or by an amount that reasonably approximates the fair value of the note. D : using a negotiated interest rate between the issuer of the note and the owner of the property, goods, or services to discount the note.
Two new software projects are proposed to a young, start-up company. The Alpha project will cost $530,000 to develop and is expected to have annual net cash flow of $60,000. The Beta project will cost $170,000 to develop and is expected to have annual net cash flow of $18,000. The company is very concerned about their cash flow. Calculate the payback period for each project. Which project is better from a cash flow standpoint
Answer: See Explanation
Explanation:
The payback period for both projects would be calculated as:
Alpha Project
Cost = $530,000
Annual net cash flow = $60,000
Payback period = Cash / Annual net cash flow
= $530,000 / $60,000
= 8.83
Beta Project
Cost = $170,000
Annual net cash flow = $18,000
Payback period = Cash / Annual net cash flow
= $170,000 / $18,000
= 9.4
We can see that Alpha Project is better as the payback period is lesser than Beta project
Argo, a firm organizing adventure travel, has returns that vary with the economy. Argo predicts that there is a 20% probability of a strong economy, a 50% probability of a normal economy, and a 30% probability of a weak economy. Given a strong economy, Argo expects a 35% return, given a normal economy, Argo expects a 14% return, and given a weak economy, Argo expects to lose 20%. What is the expected return for Argo
Answer: 8%
Explanation:
The expected return is a weighted average of the returns given the probability of certain states of the economy:
= (Prob. of boom * return if boom) + (Prob. of normal * return if normal) + (Prob. of weak * return if weak)
= (20% * 35%) + (50% * 14%) + (30% * -20%)
= 0.07 + 0.07 - 0.06
= 8%
Answer:
it is 8% my dear friend
Explanation:
You bought an old car a couple of years ago for $1,000 and put about $5,000 of parts and labor into improving it. You sold it yesterday for $3,000. a. How does this sale affect GDP? GDP will increase by $3,000 as a result of this transaction. increase by $4,000 as a result of this transaction. not change as a result of this transaction. increase by $5,000 as a result of this transaction. b. Which option below explains why this transaction does or does not affect GDP? Selling a used car was already counted in a previous year's GDP. is counted as a final good in GDP. "added value" to the economy. is an economic transaction.
Answer:
I dont know i need help with this to
Selling a used car was already counted in a previous year's GDP.
GDP:A monetary indicator of the market worth of all the finished goods and services produced in a nation over a given time period is called the gross domestic product (GDP). To compare living standards between countries, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful, whereas nominal GDP is more useful for comparing national economies on the global market. GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries. The contribution of each industry or sector to the overall GDP can also be quantified.Therefore, the correct answer is that Selling a used car was already counted in a previous year's GDP.
Know more about GDP here:
https://brainly.com/question/1383956
#SPJ2
Are marketing and sales the same in marketing
Answer:
marketing is building awareness of your organization and brand to potential customers. Sales is turning that viewership into a profit, by converting those potential customers into actual ones.
Explanation:
Explain how each of the following is presented in a multiple-step income statement. Sale of marketable securities at a loss. Adjusting entry to create (or increase) the allowance for doubtful accounts. Entry to write off an uncollectable account against the allowance. Adjusting entry to increase the balance in the marketable securities account to a higher market value.
Answer:
Presentation of a Multiple-step Income Statement
1. Sale of marketable securities at a loss.
In the non-operating section of the income statement
2. Adjusting entry to create (or increase) the allowance for doubtful accounts.
In the operating section of the income statement
3. Entry to write off an uncollectible account against the allowance.
In the operating section of the income statement
4. Adjusting entry to increase the balance in the marketable securities account to a higher market value.
In other comprehensive income section of the income statement
Explanation:
The sale of marketable securities at a loss gives rise to a realized loss. This is recorded in the non-operating section of the income statement after the operating section. Items 2 and 3 are recorded in the operating section of the income statement, as they relate to the entity's normal operations. Item 4 refers to an unrealized gain. This is recorded in the other comprehensive income section just as unrealized losses. The other comprehensive income section shows the comprehensive income and expenses, which refer to changes in equity that originate from non-operating sources.
Consider the following company balance sheet and income statement.Balance Sheet:Assets Liabilities and EquityCash $4,000 Accounts payable $30,000Accounts receivable 52,000 Notes payable 12,000Inventory 40,000 Total current liabilities 42,000Total current assets 96,000 Long-term debt 36,000Fixed assets 44,000 Equity 62,000Total assets $140,000 Total liabilities and equity $140,000 Income StatementSales (all on credit) $200,000Cost of goods sold 130,000Gross margin 70,000Selling and administrative expenses 20,000Depreciation 8,000EBIT 42,000Interest expense 4,800Earning before tax 37,200Taxes 11,160Net income $26,040 For this company, calculate the following: Current Ratio Cash flow to Debt services ratio Debt to Assets ratio What additional information would you need to determine whether or not to make a loan to this company
Answer:
Current Ratio = Current assets/Current liabilities
= 96,000/42,000
= 2.29
Cash flow to Debt services ratio = Ending Cash/Interest Expense
= $4,000/$4,800 = 0.833
Debt to Assets ratio = Total liabilities/Total assets
=$58,000/$140,000
= 0.41
The previous year's financial statements would enable one to properly calculate the cash flow to debt service ratio. The figures used in this situation were approximations of the correct figures.
Explanation:
a) Data and Calculations:
Balance Sheet:
Assets Liabilities and Equity
Cash $4,000 Accounts payable $30,000
Accounts receivable 52,000 Notes payable 12,000
Inventory 40,000 Total current liabilities 42,000
Total current assets 96,000 Long-term debt 36,000
Fixed assets 44,000 Equity 62,000
Total assets $140,000 Total liabilities and equity $140,000
Income Statement
Sales (all on credit) $200,000
Cost of goods sold 130,000
Gross margin 70,000
Selling and administrative expenses 20,000
Depreciation 8,000
EBIT 42,000
Interest expense 4,800
Earning before tax 37,200
Taxes 11,160
Net income $26,040
Current Ratio = Current assets/Current liabilities
= 96,000/42,000
= 2.29
Cash flow to Debt services ratio = Ending Cash/Interest Expense
= $4,000/$4,800 = 0.833
Debt to Assets ratio = Total liabilities/Total assets
=$58,000/$140,000
= 0.41
Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,600 and $21,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2016. During the year, manufacturing overhead costs of $75,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $78,600 at the end of 2016. If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be the Cost of Goods Sold after the proration
Answer: $60238
Explanation:
First and foremost, we need to calculate the over applied overhead which will be the difference between the actual overhead and the applied overhead. This will be:
= $78600 - $75000
= $3600
Then, the portion allocated to the cost of goods sold will be:
= $3600 × $57600 /($57600 + $21000)
= $3600 × $57600/$78600
= $3600 × 0.7328
= $2638
Therefore, the cost of Goods Sold after the proration will be:
= $57600 + $2638
= $60238
How start a digital platform?
Answer:
Building an effective platform starts with building a single source of truth about an individual. If a company wants to able to treat people as individuals with their unique identity, it needs to build a single repository or database about that individual.
Explanation: