Answer:
15.2million dilutive shares
Explanation:
Calculation to determine How many weighted average shares were dilutive in 2017.
First step is to calculate the Basic EPS using this formula
Basic EPS= Net income -Basic
Let plug in the formula
Basic EPS= $1,827 /$1.56
Basic EPS=$1,171.2 million
Second step is to calculate the Diluted EPS
Diluted EPS =$1,827 million / $1.54
Diluted EPS = $1,186.4 million.
Now let calculate How many weighted average shares were dilutive in 2017
2017 Diluted weighted average=$1,186.4 million - $1,171.2 million.
2017 Diluted weighted average= 15.2million dilutive shares
Therefore How many weighted average shares were dilutive in 2017 is 15.2 million dilutive shares
The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $24 million Operating costs (not including depreciation) $9 million Depreciation $5 million Interest expense $4 million The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t = 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.
Answer: $12,500,000
Explanation:
Sales = $24,000,000
Less: Operating cost = $9,000,000
Less,l: Depreciation = $5,000,000
Earning before interest and tax = $10,000,000
Less: Tax at 25% EBIT = $2,500,000
Net income before interest = $7,500,000
Add: Depreciation = $5,000,000
Operating cashflow = $12,500,000
The December 31, 2021, post-closing trial balance for Strong Corporation is presented below:
Accounts Debit Credit
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000
Long-Term Investments 57,000
Land 46,000
Buildings 278,000
Accumulated depreciation 83,000
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000
Notes payable, due 2031 121,000
Common stock 210,000
Retained earnings 67,700
Totals $ 591,900 $ 591,900
Question Completion:
Prepare a classified balance sheet as of December 31, 2021.
Answer:
Strong Corporation
STRONG CORPORATION
Classified Balance Sheet
As of December 31, 2021
Assets
Current Assets:
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000 $210,900
Total current assets
Long-Term Investments $57,000
Long-term assets:
Land 46,000
Buildings 278,000
Acc. depreciation 83,000 195,000 $241,000
Total assets $508,900
Liabilities and Equity
Current liabilities:
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000 $110,200
Long-term liabilities:
Notes payable, due 2031 $121,000
Equity:
Common stock 210,000
Retained earnings 67,700 $277,700
Total liabilities and equity $508,900
Explanation:
a) Data and Analysis:
STRONG CORPORATION
Post-closing Trial Balance
December 31, 2021
Accounts Debit Credit
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000
Long-Term Investments 57,000
Land 46,000
Buildings 278,000
Accumulated depreciation $83,000
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000
Notes payable, due 2031 121,000
Common stock 210,000
Retained earnings 67,700
Totals $ 591,900 $ 591,900
b) The balance sheet is a summary of the financial position or assets, liabilities, and equity of Strong Corporation as at December 31, 2021.
Private producers have no incentive to provide public goods because A. the government subsidy granted is usually insufficient to enable private producers to make a profit. B. production of huge quantities of public goods entails huge fixed costs.
Answer:
Private producers have no incentive to provide public goods because
B. production of huge quantities of public goods entails huge fixed costs.
Explanation:
There is rivalry in the production and consumption of private goods. This rivalry is generally described as competition. Most public goods are produced naturally or provided by the government to her citizens. Since they are made available for the welfare of the people, there is usually no cost recovery or exclusion of persons based on financial affordability. But private goods are manufactured and sold by private companies or individuals for a profit motive.
A form of marketing in which a product or service is promoted by an individual that an audience looka up to is ___ marketing.
Answer:
Branding or Brand marketing or promotional marketing
Explanation:
In this form of marketing, a person known in the society or with huge followers on social media or other ways is made the brand ambassador for the product which needs promotion and hence the sale of that particular goods or service is boosted through marketing.
Fraud is encouraged when a notary does what?
Answer:
Overcharging for notary public services. Notarizing a document without the signer being in the notary's presence. Notarizing the notary's own signature. Issuing identification cards.
Explanation:
Excessive fees for notarial services, signing a document without the signer being present and notarizing it. the notary's signature is notarized. making identity cards available.
What is notary fraud?If a Notary Public violates the law while carrying out their responsibilities, they are held personally accountable. A Notary Public must post a bond in order to protect the injured party's right to recover up to $10,000. Despite this, the Notary Public is still personally responsible for any damages they may have caused, and they risk criminal prosecution as well as the revocation or suspension of their notary public commission.
A few examples of notary fraud include:
ignoring your documents' acknowledgmentcounterfeit stampsletting a signer sign a document without the presence of a notary publicA Notary Public who has been paid off to falsely recognize a document is the starting point of many fraud cases, particularly those involving real estate fraud. Due to the fact that practically all papers submitted in the county records require a notary stamp, this scenario occasionally occurs.
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A portfolio manager plans to use a Treasury bond futures contract to hedge a bond portfolio over the next three months. The portfolio is worth $100 million and will have a duration of 5.6 years in three months. The futures price is 112, and each futures contract is on $100,000 of bonds. The bond that is expected to be cheapest to deliver will have a duration of 9.0 years at the maturity of the futures contract. What position in futures contracts is required
Answer: 556
Explanation:
The position in futures contracts that is required will be calculated thus:
= (100,000,000 × 5.6) / (112,000 × 9)
= 560,000,000 / 1,008,000
= 555.5
= 556 approximately
Therefore, based on the calculation, the answer is 556.
Do airlines practice price discrimination LOADING... ? Explain. Airlines A. engage in price discrimination by charging business travelers and leisure travelers different prices . B. do not engage in price discrimination because they charge lower prices to passengers who will stay at their destination over a Saturday night. C. engage in price discrimination by maintaining the same price on seats even if seats will not be sold . D. do not engage in price discrimination because the marginal cost of flying one additional passenger is low . E. do not engage in price discrimination because their passengers have similar demands.
Answer:
A. engage in price discrimination by charging business travelers and leisure travelers different prices.
Explanation:
Yes, airlines practice price discrimination. They engage in price discrimination by charging business travelers and leisure travelers different prices for the same distance travelled.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
If Argentina imposes a 20 percent tax on natural gas exports to be paid by suppliers. Other things equal, this causes the:
Select one:
a. supply of natural gas exports to shift to the right.
b. quantity of natural gas exports produced to increase.
c. demand for natural gas exports to shift to the right.
d. supply of natural gas exports to shift to the left.
Answer:
supply of natural gas exports to shift to the left.
Accounts Randall Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Randall calculated a total of $3,000 in possible credit losses as of December 31. Accounts Receivable has a balance of $128,000, and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment at December 31. What is the December 31 adjusting entry to provide for credit losses
Answer:
Explanation:
The journal entry will be:
Debit: Bad debt expense $2500
Credit: Allowance for doubtful $2500
Then, we will calculate the net amount of account receivable that should be included in current assets which will be:
Account receivable = $128000
Less: Allowance for doubtful = $500 + $2500 = $3000
Net amount of account receivable = $125000
Production costs chargeable to the Finishing Department in May at Kim Company are materials $7,700, labor $19,700, overhead $18,289, and transferred-in costs $66,801. Equivalent units of production are materials 20,300 and conversion costs 18,900. Kim uses the FIFO method to compute equivalent units. Compute the unit costs for materials and conversion costs. Transferred-in costs are considered materials costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $ 5.54 Conversion cost per unit $
Answer and Explanation:
The computation of the unit cost for material and conversion cost is shown below:
Material Cost per Unit is
= Total Material Cost ÷ Equivalent Units for Materials
,= ($7,700 + $66,801) ÷ (20,300 units)
= $3.67 per unit
And, the conversion cost per unit is
= (labor cost + overhead cost) ÷ equivalent units for conversion
= ($19,700 + $18,289) ÷ 18,900 units
= $2.01 per unit
Parking lot staff budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:
School Days Nonschool Days
Number of vehicles per day 3,000 8,000
Number of days per year 165 200
Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day.
Required:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
b. Determine the parking revenue for school days, nonschool days, and total.
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.
Answer: See explanation
Explanation:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
For school days:
Number of staff required per day = 3000/20 = 15
Number of staff days per year = 15 × 165 = 2475
Annual parking lot staff budget = 2475 × $110 = $272250
For non school days:
Number of staff required per day = 8000/20 = 40
Number of staff days per year = 40 × 200 = 8000
Annual parking lot staff budget = 800 × $110 = $880,000
Total annual parking lot staff budget = $272250 + $880000 = $1152250
b. Determine the parking revenue for school days, nonschool days, and total.
For school days:
Total number of vehicles per year = 3000 × 165 = 495000
Parking revenue = 495000 × $10 = $4950000
For non school days:
Total number of vehicles per year = 8000 × 200 = 1600000
Parking revenue = 1600000 × $10 = $16000000
Total parking revenue = $4950000 + $16000000 = $20950000
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.
Parking revenue = $20,950,000
Less: Parking lot staff payroll = $1152250
Less: Depreciation and other expenses = $2000000
Budgeted profit = $177977500
The double-entry principle in the balance-of-payments
How will the following transactions affect the U.S. balance-of-payments? For each transaction in the following table, indicate in which U.S. account it appears as a credit and in which account it appears as a debit
Transaction Account with Account with
Credit Debit
Miguel, a U.S. resident, buys an HDTV set for
$2,500 and sends it to Mexico as a gift to his parents.
Arielle, a French tourist, stays at a hotel in San
Francisco and pays $400 for it with her debit
card issued by a French bank.
A U.S. computer manufacturer purchases hard
drives from a Korean company, paying the funds
from its bank account in Korea.
Answer:
The Current account is for goods and services.
The Financial account is for exchange of currencies and financial assets across countries.
Miguel, a U.S. resident, buys an HDTV set for $2,500 and sends it to Mexico as a gift to his parents. DEBIT CURRENT ACCOUNT. CREDIT CURRENT ACCOUNT.
Miguel buys the good in the U.S. and then sends it so this falls under the current account alone.
Arielle, a French tourist, stays at a hotel in San Francisco and pays $400 for it with her debit card issued by a French bank. DEBIT FINANCIAL ACCOUNT. CREDIT CURRENT ACCOUNT.
The Financial account should be debited to show that currency is coming into the U.S. from outside the country and current account should be credited for services rendered.
A U.S. computer manufacturer purchases hard drives from a Korean company, paying the funds from its bank account in Korea. DEBIT CURRENT ACCOUNT. CREDIT FINANCIAL ACCOUNT.
Current account should be debited to reflect that goods are coming into the country but the financial account should be credited to show that currency is leaving the ownership of an American entity so it is passing out of American hands.
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%.
Required:
Prepare the journal entry to record the transaction of December 31, 2015
Answer:
Date Account titles and Explanation Debit ($) Credit ($)
Notes receivable 200,000
Discount on notes receivable 34,711
Sales revenue 165,289
(To record notes receivable)
Workings:
The PV of $200,000 due in 2 years at 10% = $200,000*0.82645 = $165,290
Grace wants to sell her motorcycle, and Ryan is looking for a used motorcycle to buy. Ryan takes it for a test drive. Grace knows that the clutch is going out on her motorcycle, the fuel filter is leaking, and the tires will need to be replaced soon. If she does not disclose this information to Ryan and he cannot tell from his test drive, this is an example of
Answer:
lack of disclosure
Explanation:
As a rider, this is idiotic as both are clear when riding and even before mounting the vehicle. it is highly illegal to sell a vehicle or piece of property without disclosing problems that you know of.
The given situation is an example of asymmetric information.
What is the meaning of Asymmetric Information?
Asymmetric information refers to the transaction in which two parties are involved and one party has more information than the other. In those transactions buyers and take the advantage of the seller.
According to the given situation there is transaction of selling of the motorcycle is involved between Grace and Ryan. The Grace does not disclose the complete information about the clutch. This type of the transaction is called as Asymmetric information.
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You won the lottery when the jackpot was $3,300,000 (annual payments of $165,000 paid for 20 years). Your choice is to take the annual payments for 20 years or take the lump sum payout today. The lottery administration uses a 4% interest rate. What is the value of the lump sum payout
Answer:
Lump sum= $2,242,403.85
Explanation:
First, we need to calculate the future value of the annual payments using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {165,000*[(1.04^20) - 1]} / 0.04
FV= $4,913,382.97
Now, the lump sum is the present value of the annual payments:
PV= FV / (1 + i)^n
PV= 4,913,382.97 / (1.04^20)
PV= $2,242,403.85
g Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $5 billion
Explanation:
First find the spending multiplier which is a multiplier that shows how Aggregate demand increases as a result of additional spending.
Multiplier = 1 / (1 - Marginal propensity to consume)
= 1 / ( 1 - 0.8)
= 5
If the government wants to raise Aggregate demand by $25 billion, they should spend:
Increase in AD = Amount * Multiplier
25 billion = Amount * 5
Amount = 25 / 5
= $5 billion
During lunch time, customers arrive at a postal office at a rate of lambda equals 36 per hour. The interarrival time of the arrival process can be approximated with an exponential distribution. Customers can be served by the postal office at a rate of mu equals 45 per hour. The service time for the customers can also be approximated with an exponential distribution. For each of the following questions, show your work and use the right notation.
Required:
Determine the utilization factor.
Answer:
the utilization factor is 4 ÷ 5
Explanation:
The computation of the utilization factor is shown below:
given that
Customer arrives at the rate of λ equivalent to the 36 per hour
And, Customers can be served by the postal office at a rate of μ equivalent to the 45 per hour
λ = 36 / hour
μ = 45 / hour
Now utilization factor is
P = λ ÷ μ
= 36 ÷ 45
= 4 ÷ 5
Thus, the utilization factor is 4 ÷ 5
Assume that Clampett, Incorporated, has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of interest income, and $40,000 of dividends. Assume that Clampett, Incorporated, never operated as a C corporation and that the corporate tax rate is 21 percent. What is Clampett, Incorporated's excess net passive income tax
Answer:
$21,000
Explanation:
Calculation to determine Clampett, Incorporated's excess net passive income tax
Using this formula
Excess net passive income tax = ( Interest income + Dividends ) × Tax rate
Let plug in the formula
Excess net passive income tax = ( $60,000 + $40,000 ) × 0.21
Excess net passive income tax = $21,000
Therefore Clampett, Incorporated's excess net passive income tax will be $21,000
Agee Storage issued 33 million shares of its $1 par common stock at $21 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $19 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee’s total paid-in capital decline if it now reacquires 1 million shares at $24 per share?
Answer:
$23 million
Explanation:
Calculation to determine at what amount will Agee’s total paid-in capital decline
First step is to calculate the Cash paid for the first repurchase
Cash paid for the first repurchase = 1 million * 19
Cash paid for the first repurchase = $19 million
Second step is to calculate the Value of first purchase
Value of first purchase = 1 million * 21
Value of first purchase = $21 million
Third step is to calculate the Benefit on first repurchase
Benefit on first repurchase = 21 million - 19 million
Benefit on first repurchase = $2 million
Fourth step is to calculate Cash paid for second repurchase
Cash paid for second repurchase = 1 million * 24
Cash paid for second repurchase = $24 million
Fifth step is to calculate the Value of second purchase = Reacquired shares * Common stock price
Value of second purchase = 1 million * 21
Value of second purchase = $21 million
Last step is to calculate the Decline in total paid-in capital using this formula
Decline in total paid-in capital= Benefit on first repurchase + Value of second purchase
Decline in total paid-in capital = 2 million + 21 million
Decline in total paid-in capital = $23 million
Therefore what amount will Agee’s total paid-in capital decline is $23 million
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr.
1 Stockholders invested $22,770 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $474 per week, payable monthly.
2 Paid office rent for the month $1,138.
3 Purchased architectural supplies on account from Burmingham Company $1,644.
10 Completed blueprints on a carport and billed client $2,403 for services.
11 Received $885 cash advance from M. Jason to design a new home.
20 Received $3,542 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,896.
30 Paid $379 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answer:
Ayala Architects
Journal Entries:
Apr. 1 Debit Cash $22,770
Credit Common Stock $22,770
To record common stock for cash.
Apr. 2 Debit Rent Expense $1,138
Credit Cash $1,138
To record rent expense paid for cash.
Apr. 3 Debit Supplies $1,644
Credit Cash $1,644
To record Supplies paid for cash.
Apr. 10 Debit Accounts Receivable $2,403
Credit Service Revenue $2,403
To record services rendered on account.
Apr. 11 Debit Cash $885
Credit Deferred Revenue $885
To record cash receipt for services not yet rendered.
Apr. 20 Debit Cash $3,542
Credit Service Revenue $3,542
To record cash received for services rendered.
Apr. 30 Debit Salaries $1,896
Credit Cash $1,896
To record payment of salary.
Apr. 30 Debit Accounts Payable $379
Credit Cash $379
To record payment on account.
Explanation:
a) Data and Analysis:
Apr. 1 Cash $22,770 Common Stock $22,770
Apr. 2 Rent Expense $1,138 Cash $1,138
Apr. 3 Supplies $1,644 Cash $1,644
Apr. 10 Accounts Receivable $2,403 Service Revenue $2,403
Apr. 11 Cash $885 Deferred Revenue $885
Apr. 20 Cash $3,542 Service Revenue $3,542
Apr. 30 Salaries $1,896 Cash $1,896
Apr. 30 Accounts Payable $379 Cash $379
ABG
Question 14
Some fast-food restaurants sell only chicken, others sell only tacos and burritos, and still others sell only hamburgers. This is an example of the economic concept of
investment
А
B
business cycles
C
specialization
D
elasticity
Answer:
i think it is eaither b or c
Explanation:
Answer: C- specialization
Explanation:
Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $322 per month invested at 4%, compounded monthly, for 5 years; then 440$ per month invested at 5%, compounded monthly, for 5 years.
Answer:
Total value of the investment= $57,320.73
Explanation:
First, we need to calculate the future value of the first part of the investment. We will calculate the future value for the monthly deposit for five years and then the lump sum for another five years.
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
i= 0.04/12= 0.003333
n= 5*12= 60 months
FV= {322*[(1.003333^60) - 1]} / 0.003333
FV= $21,348.05
For the lump sum:
FV= PV*(1+i)^n
n= 12*5= 60
i= 0.05/12= 0.004167
FV= 21,348.05*(1.004167^60)
FV= $27,397.75
Now, the future value of the second part of the investment:
n= 60
i= 0.0041667
A= 440
FV= {440*[(1.004167^60) - 1]} / 0.004167
FV= $29,922.98
Total value of the investment= 27,397.75 + 29,922.98
Total value of the investment= $57,320.73
Special Group, a company involved in the production and distribution of water and carbonated drinks has recently decided to venture into the transportation business. As the marketing executive tasked with the responsibility of overseeing the planning and execution of this new venture, explain to the management of Special Group how the transport business differs from the drinks business in relation to its characteristics, detailing what unique marketing strategies and marketing mix decisions shall be adopted in ensuring its success.
DC: ACD01-F004
Answer:
The marketing executive's decision was correct.
Explanation:
It is essential for the success of the new transport business, that there is recognition between the essential differences between the businesses and that it is necessary to implement new marketing strategies in order for the company to be well positioned and competitive in the market. Therefore, the marketing mix can be understood as a set of elements that will lead a company to achieve its objectives and goals through the consistent alignment of marketing strategies considering the essential variables for every business regardless of its sector.
The marketing mix comprises price, product, place and promotion, when a company develops strategies for each of these variables it is able to better understand the systems that lead to a good positioning of its business, satisfaction and value creation for its potential audience.
Finlay, Inc., issued 10,000 shares of $51 par value preferred stock at $69 per share and 14,000 shares of no-par value common stock at $10 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 $5 per share. c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $1 per share.
Answer and Explanation:
The journal entries are shown below;
a. Cash (10000 × $69) $690,000
To Preferred stock (10000 × $51) $510,000
To Additional paid in capital $180,000
(Being issuance of the preferred stock is recorded)
Cash (14000 × $10) $140,000
To Common stock no par value $140,000
(being issuance of the common stock is recorded)
b.
Cash $140,000
To Common stock stated value (14000 ×$5) $70,000
To Paid in capital in excess of stated value $70,000
(being issuance of the common stock is recorded)
c.
Cash $140,000
To Common stock at par (14000 × $1) $14,000
To Paid in capital in excess of par $126000
(being issuance of the common stock is recorded)
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2021 and $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year.
Required:
Prepare journal entries to record the write-off of receivables, the collection of Sl,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense.
Answer and Explanation:
The journal entries are shown below:
Allowance for uncollectible accounts $21,000
To Account receivable $21,000
(being written off is recorded)
Account receivable Dr $1,200
To Allowance for uncollectible accounts $1,200
(Being written back of receivable is recorded)
Cash Dr $1,200
To Account receivable $1,200
(being cash received is recorded)
Bad debt expense $50,300 ($32,000 - $21,000 + $1,200 - $625,000 × 0.10)
To Allowance for uncollectible accounts $50,300
(being the bad debt expense is recorded)
If a price ceiling is imposed at $15 per unit when the equilibrium market price is $12, there will be:
Answer:
the tiny thing dont work
Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.
Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)
Answer:
the standard price for a gallon of Solvate is $5,942 per gallon
Explanation:
The computation of the standard price for a gallon of Solvate is shown below:
List Price $6.1 per gallon
Less: Discount at 14% 0.854 per gallon
Charges (130 ÷ (25 × 49) 0.106 per gallon
Special Storage $0.59 per gallon
Total Cost $5.942 per gallon
Hence, the standard price for a gallon of Solvate is $5,942 per gallon
The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year). Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case. If the manager orders 16 cases each time she places an order, how many orders would she place in a year
Answer:
90 orders she would place in a year
Explanation:
The total annual cases of Stein soda that the manager buys are 1,440 cases. If she were to place 16 cases in a single order then we would divide the total cases bought in a year by the cases bought in a single order to determine the number of orders the manager would place in a year. As shown below:
No. of orders placed in a year = Annual Total Cases bought / Cases purchased in single order
No. of orders placed in a year = 1,440 / 16
No. of orders placed in a year = 90 orders
Perfect Patties, Inc. has several divisions. One division provides birthday parties at their facility. Each party sold provides entertainment, decorations, food, and party favors for 10 children. The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results.
Perfect Parties
Birthday Party Division Analysis of Revenues and Costs
For the Month Ended June 30
Planning Budge Actual Results Variances
Number of parties 80 92
Revenue $36,000 $39,560 $3,560 F
Expenses:
Food costs 7,200 8,648 1,448 U
Party supplies 3,200 3404 204 U
Party worker wages 6,400 7,728 1,328 U
Administrative salaries 3,700 3,500 200 F
Equipment depreciation 1,200 1,200 - None
Rent 5,000 5,000 - None
Total expense 26,700 29,480 2,780 U
Net operating income $9,300 10,080 $780 F
Food costs, party supplies, and party worker wages are variable costs.
Administrative salaries, equipment depreciation and rent are fixed costs.
Prepare a new report for June using the flexible budget approach.
Answer:
Perfect Parties, Inc.
Birthday Party Division
Analysis of Revenues and Costs
For the month ended June 30
Flexible Budget Actual Results Variances
Number of parties 80 92
Revenue $41,400 $39,560 $1,840 U
Expenses:
Food costs 8,280 8,648 368 U
Party supplies 3,680 3,404 276 F
Party worker wages 7,360 7,728 368 U
Administrative salaries 3,700 3,500 200 F
Equipment depreciation 1,200 1,200 - None
Rent 5,000 5,000 - None
Total expense 29,220 29,480 260 U
Net operating income $12,180 $10,080 $2,100 U
Explanation:
a) Data and Calculations:
Birthday Party Division Analysis of Revenues and Costs
For the Month Ended June 30
Planning Budget Actual Results Variances
Number of parties 80 92
Revenue $36,000 $39,560 $3,560 F
Expenses:
Food costs 7,200 8,648 1,448 U
Party supplies 3,200 3404 204 U
Party worker wages 6,400 7,728 1,328 U
Administrative salaries 3,700 3,500 200 F
Equipment depreciation 1,200 1,200 - None
Rent 5,000 5,000 - None
Total expense 26,700 29,480 2,780 U
Net operating income $9,300 10,080 $780 F
Flexing the variable revenue and costs:
Revenue $36,000/80 * 92 = $41,400
Food costs 7,200/80 * 92 = $8,280
Party supplies 3,200/80 * 92 = $3,680
Party worker wages 6,400/80 * 92 = $7,360
Genuine Goods has two stores: East and West. During May, Genuine reported a net operating income of $50,000 and sales of $540,000. The contribution margin in Store East was $100,000, or 40% of sales. The segment margin in Store West was $45,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store East, and $40,000 in Store West. Genuine's total fixed expenses for the year were
Answer:
the total fixed expense for the year is $145,000
Explanation:
The computation of the total fixed expense for the year is shown below:
= (Store east fixed expense + store west fixed expense) + ((contribution margin - store east fixed expense) + net operating income - segment margin)
= ($60,000 + $40,000) + (($100,000 - $60,000) + $50,000 - $45,000
= $145,000
hence, the total fixed expense for the year is $145,000