Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000
The Pet Store experienced the following events for the Year 1 accounting period:________.
1. Acquired $60,000 cash from the issue of common stock.
2. Purchased $65,000 of inventory on account.
3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
4. Sold inventory on account that cost $38,000 for $71,000.
5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost.
6. Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150.
7. Collected $58,300 cash from accounts receivable.
8. Paid $59,200 cash on accounts payable.
9. Paid $2,600 for advertising expense.
1. Paid $3,100 cash for insurance expense.
Required:
a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction
b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for NA. investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The beginning balances have been recorded as an example.
Complete this question by entering your answers in the tabs below.
Required A Required B
Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.
Transaction Cost
1
2
3
4
5
6
7
8
9
10
Answer:
I used an excel spreadsheet since there is not enough room here
Explanation:
$370,000, at 9% annual interest, from Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that
Answer and Explanation:
The adjusting entry is shown below:
Interest Expense $2,775
To Interest Payable$2,775
(being interest expense is recorded)
The computation is shown below:
The calculation is
= $370,000 × 9% ÷ 12 months
= $2,775
Here the interest expense is debited as it increased the expenses and credited the interest payable as it also increased the liabilities
Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis.
Average monthly customer-visits 1,462
Average monthly total costs $4,629
Regression results: Intercept $1,496
b coefficient $2.08
R2 0.86814
Required:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
b. How is the letter y in the regression equation best described?
c. How is the letter x in the regression equation best described?
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
e. What is the percent of the total variance that can be explained by the regression equation?
Answer:
Explanation:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
Here, b is the slope and best described as the estimate of the cost when there's a visit of an additional customer.
b. How is the letter y in the regression equation best described?
The letter y is the observed store cost for that particular month.
c. How is the letter x in the regression equation best described?
The letter x is the observed customer visit for that particular month.
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
The estimated cost for 370 customer visit will be:
Y = a + bx
where,
a =$1496
b = $2.08
x = 370 customer visit
Y = $1496 + ($2.08 × 370 customer visit)
= $1496 + $769.6
= $2265.6
e. What is the percent of the total variance that can be explained by the regression equation?
The percent of total variance which the regression equation explain will be:
R2 = 0.86814 or 86.814%
Laws governing sales are only enacted when the rights of an organization are infringed upon
True
False
Answer:
This is true for odyssey-ware
Explanation:
Burke Company has a break-even of $600,000 in total sales. Assuming the company sells its product for $40 per unit, what is its margin of safety in units if sales total $1,000,000
Answer:
The margin of safety in units is 10,000 units
Explanation:
The computation of the margin of safety in units is shown below:
The Margin of safety in units is
= Budgeted or actual sales - break even sales
= ($1,000,000 ÷ $40 per unit) - ($600,000 ÷ $40 per unit)
= 25,000 units - 15,000 units
= 10,000 units
Hence, the margin of safety in units is 10,000 units
Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $36,000.
3 Buys office furniture for $3,800, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,800 (not paid by Roads at this time).
10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
27 Pays $700 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,000 in salary for October.
Required:
Prepare the debit—credit analysis for each transaction.
Answer:
Debit credit analysis of given journal entries.
Explanation:
1. Cash ac dr , Purchase (common stock) ac cr ... 30000
2. No entry for hiring only , No accrual or cash transaction takes place
3. Furniture ac dr, creditor/ accounts payable (Furniture supplier) ac cr ... 3800
6. Debtor/ accounts recievables (Roads') ac dr, Comission ac cr ... 10800
10. Cash ac dr, Comission ac cr ... 140
27. creditor/ accounts payable (Furniture supplier) ac dr, Cash ac cr ... 700
30. Salary ac dr, Cash ac cr 3000
Which account is an example of a contra-expense account? A. purchases B. purchase returns C. sales D. sales returns
Answer:
b. purchase returns
An account which is an example of a contra-expense account is purchase returns. The correct option is b.
What is the contra-expense account?A contra expense account is a general ledger expense account that will intentionally have a credit balance instead of the debit balance that is typical for an expense account. In other words, this account's credit balance is contrary to or opposite of the usual debit balance for an expense account.
Another description of a contra expense account is an account that reduces or offsets the amounts reported in another general ledger expense account. Contra accounts are presented on the same financial statement as the associated account, typically appearing directly below it with a third line for the net amount. Accountants use contra accounts rather than reduce the value of the original account directly to keep financial accounting records clean.
Key examples of contra accounts include accumulated depreciation and allowance for doubtful accounts.
Learn more about account, here:
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PinaCompany is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.
Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales are 20%, 25%, 26%, and 29%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $43 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% higher than the budgeted sales for the first quarter of 2017.
Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter’s budgeted sales volume.
Direct materials: Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 510,000 pounds.
Required:
Prepare the sales, production, and direct materials budgets by quarters for 2017.
Answer:
where is the question
Explanation:
At the beginning of 2020, Pronghorn Company acquired a mine for $1,732,800. Of this amount, $112,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,600,000 units of ore appear to be in the mine. Pronghorn incurred $190,400 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $44,800. During 2020, 2,718,000 units of ore were extracted and 2,310,000 of these units were sold.
Required:
a. Compute the total amount of depletion for 2020.
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Answer: a. $434880
b. $369,600
Explanation:
a. Compute the total amount of depletion for 2020.
Depletion Rate can be calculated as:
= (Mine cost - Value of land + Obligation + Development cost)/Ore extracted
= ($1,732,800 - $112,000 + $44,800 + $190,400)/$11,600,000
= $1856000/$11600000
= 0.16
Total amount of depletion for 2020 will now be calculated as:
= Depletion Rate × Ore extracted
= 0.16 × 2,718,000
= $434880
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
This will be calculated as the totsl depletion for 2014 divided by the value of the amount of ore that was extracted multiplied with amount of unit sold. This will be:
= (434,880/2,718,000) × 2,310,000
= 0.16 × 2,310,000
= $369,600
When an organization tries to influence the adaptation of individuals, the process of _____ is occurring. Group of answer choices encounter socialization individualization metamorphosis
Answer:
B. socialization
Explanation:
Socialization can be defined as the process in which individuals learn to behave in a morally acceptable way or manner, acquire values, attitudes and habits that are in tandem with the environment where they found themselves such as an organization.
Hence, when an organization tries to influence the adaptation of individuals, the process of socialization is occurring.
The bookkeeper for Ivanhoe Company asks you to prepare the following accrual adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a. Interest on notes payable of $270 is accrued.
b. Services performed but unbilled totals $1,930.
c. Salaries of $700 earned by employees have not been recorded.
Answer:
Date Account titles and explanation Debit Credit
(a) Dec. 31 Interest Expense $270
Interest Payable $270
(b) Dec. 31 Accounts Receivable $1,930
Service Revenue $1,930
(c) Dec. 31 Salaries Expense $700
Salaries Payable $700
The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2020. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined.
1. There were bank service charges for June of $25.
2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.5 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.)
3. Receipts for June 30 for $3,390 were not deposited until July 2.
4. Checks outstanding on June 30 totaled $2,136.05.
5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.2 on June 29.
6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts journal by Aguilar on June 15.
7. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $58.2 had been entered as $582. Both checks had been issued to pay for purchases and were payments on Aguilar’s Accounts Payable.
Required:
a. Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance.
b. Prepare any entries necessary to make the books correct and complete.
Answer:
a) bank account reconciliation
bank account balance $4,150
+ deposits in transit $3,390
- outstanding checks ($2,136.05)
reconciled account $5,403.95
cash account reconciliation
cash account balance $3,969.85
- bank fees ($25)
+ note collected (including interest) $1,236
- bank fees for collecting note ($5.50)
- NSF check ($253.20)
- error in processing customer's check $30
- error in processing check no. 742 ($72)
+ error in processing check no. 747 $523.80
reconciled account $5,403.95
b) adjusting entries
1. Dr Bank fees expense 25
Cr Cash 25
2. Dr Cash 1,230.50
Dr Bank fees 5.50
Cr Notes receivable 1,200
Cr Interest revenue 36
3. and 4. no adjusting entry required
5. Dr Accounts receivable 253.20
Cr Cash 253.20
6. Dr Cash 30
Cr Accounts receivable 30
7. Dr Accounts payable 451.80
Cr Cash 451.80
The purpose of environmental forecasting is to ______. Multiple choice question. collect and interpret data on competitors follow trends in a firm's external environment monitor the external environment predict change
Answer:
predict change.
Explanation:
Environmental forecasting can be defined as a strategic process which typically involves the management predicting the future characteristics of an external environment of the organization for good decisions making.
Hence, the purpose of environmental forecasting is to predict change.
Environmental forecasting is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.
Generally, the environmental forecasting gives an overview of the opportunities in the market as well as potential threats to an organization.
Hence, the following are descriptive of an environmental forecasting;
1. Used as a tool for corporations to avoid strategic surprise.
2. Used to monitor, evaluate, and disseminate information relevant to the organizational development of strategy.
3. Used to determine a firm's competitive advantage.
4. Used as a tool to ensure a corporation's long-term health.
Countess Corp. is expected to pay an annual dividend of $4.39 on its common stock in one year. The current stock price is $92 per share. The company announced that it will increase its dividend by 3.55% annually. What is the company's cost of equity
Answer:
8.32 %
Explanation:
With the information provided, we can calculate the company's cost of equity by using the Dividend Growth Model.
Thus,
Cost of Equity = Dividend / Stock Price + Expected Growth
Therefore,
Cost of Equity = $4.39 / $92 + 3.55%
= 8.32 %
What do successful entrepreneurs have in common?
Answer:
market trends change constantly, funding fall through, business partners flake, and ideas may go wrong
hope this help!
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account, and $2,660,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,590,000, $151,000 in the common stock account, and $2,960,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $94,500 and the company paid out $146,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $970,000, and the firm reduced its net working capital investment by $126,000.
What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer: $589,500
Explanation:
The cash flow to the creditors in 2016 will be calculated as:
= $94,500 – ($1,590,000 - $1,405,000)
= $94,500 – $1,590,000 + $1,405,000
= -$90,500
For the shareholders, the cash flow in 2016 will be:
= $146,000 – [($151,000 + $2,960,000) – ($141,000 + $2,660,000)]
= -$164,000
Capital spending = $970,000
Cash flow due to the net working capital investment = -$126,000
OCF
= -$90,500 + (-$164,000) + $970,000 + (-$126,000)
= $589,500
On January 1, 2021, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows:
Moody Osorio
Cash $180 $40
Receivables 810 180
Inventories 1,080 280
Land 600 360
Buildings (net) 1,260 440
Equipment (net) 480 100
Accounts payable (450) (80)
Long-term liabilities (1,290) (400)
Common stock ($1 par) (330)
Common stock ($20 par) (240)
Additional paid-in capital (1,080) (340)
Retained earnings (1,260) (340)
Note: Parentheses indicate a credit balance.
In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60. Compute the amount of consolidated inventories at date of acquisition.
A. $1,080.
B. $1,420.
C. $1,065.
D. $1,425.
E. $1,440.
Answer:
$1,370
Explanation:
IFRS 3 states that Acquirer is deemed to have taken over the Assets and Liabilities at their Acquisition Fair Value in Acquired records.
Therefore,
We need to first revalue the Inventory shown in Osorio records upwards by $10.
Then we combine 100% of Moody`s Inventory with 100% of Osorio fair valued Inventory.
Calculation of Consolidated Inventory Balance
Moody`s Inventory $1,080
Osorio fair valued Inventory (280 + 10) $290
Inventory Balance $1,370
Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $26,000 per year for 2 years. If demand is bad (60% probability), then the net cash flows will be $3,000 per year for 2 years. Fethe's cost of capital is 13%. Do not round intermediate calculations.
Required:
a. What is the expected NPV of the project?
b. if Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000.
Answer:
$350
Explanation:
We can calculate the expected NPV by calculating the present value of future cash flows first and then deduct these cash flows from the initial investment.
DATA
Inital Investment = $ 20,000
cost of capital = 13%
Calculation
Expected Cash flow for year 1 = $ 26,000 x 40% = 10,400
Expected Cash flow for year 2 = $3,000 * 0.6 = 1800
Expected cash flow = 12,200
Present value of future cash flows = $12,200/1.13 + $12,200/(1.13)^2
Present value of future cash flows = $10,796 + $9,554
Present value of future cash flows = $20,350
Expected NPV of the project = Present value of future cash flows - Initial Investment
Expected NPV of the project = $20,350 - $20,000 = $350
Requirement B
Present value of future cashflows = 20350
Present value of renewal in year2 = 20,000/(1.13)^2 = $15,673
Inital = $20,000
NPV = 20,350 - 20,000 - 15,673
NPV = -15,323
Firms face competing pressures in the marketplace-how to achieve lower costs through proven approaches to production, while looking at how to maximize their effectiveness in local markets. A firm's choice of strategy must reflect these pressures, and the firm knows that the dynamics of competition may require changes in strategy. Pressures for local responsiveness mean that a firm may not be able to realize the full benefits from economies of scale, learning effects, and location economies. Customization of products brings benefits, but it also limits the firm's ability to realize significant scale economies and location economies. Companies generally choose from four main strategic postures: a global standardization strategy, a localization strategy, a transnational strategy, or an international strategy. The appropriateness of each strategy varies given the competitive realities and the firm's core competences.
Read the case below and answer the questions that follow.
Your firm has been a leader in several lines of fast-moving consumer goods. The firm has been following a localization strategy. Your products have been distributed in a number of foreign markets and regions, and they are distinct enough in local markets to respond to national tastes and preferences. Competition, however, has become more intense, with many competitors using lower cost structures to undercut your prices and still satisfy your customers.
The firm must decide what kind of strategy it needs to follow to meet the demands of the local markets as well as the increased competitive pressures on cost.
a. leverage skills and products associated with a firm's core competencies from one country to another.
b. monitor and adapt to changing customer tastes in a large number of foreign markets.
c. compete effectively in more than one international market.
Answer:
a. leverage skills and products associated with a firm's core competencies from one country to another.
Explanation:
Company A can still meet the demands of the local markets and the competitive pressures it is facing by utilizing its core competences and deploring its products internationally. A hybrid of localization and international strategies would be more appropriate. This hybrid approach will enable the company "to realize the full benefits from economies of scale and learning effects, without losing on location economies," as desired in the case study.
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:
Item Mortar Corporation Granite Company
Debit Credit Debit Credit
Cash $38,000 $25,000
Accounts Receivable 50,000 55,000
Inventory 240,000 100,000
Land 80,000 20,000
Buildings and Equipment 500,000 150,000
Investment in Granite Company Stock 202,000
Cost of Goods Sold 500,000 250,000
Depreciation Expense 25,000 15,000
Other Expenses 75,000 75,000
Dividends Declared 50,000 20,000
Accumulated Depreciation $155,000 $75,000
Accounts Payable 70,000 35,000
Mortgages Payable 200,000 50,000
Common Stock 300,000 50,000
Retained Earnings 290,000 100,00
Sales 700,000 400,00
Income from Subsidiary 45,000
$1,760,000 $1,760,000 $710,000 $710,000
Additional Information:
a. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250.
b. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
c. Granite's depreciable assets had an estimated economic life of 11 years on the date of combination.
d. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment.
Required:
Give all journal entries recorded by Mortar related to its investment in Granite during 20X7.
Answer:
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Explanation:
sdhfd dyhdf jkdfgd fhkdfksdgusbmnj64 uey734n vui8 34bnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnb ky khr uy
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report.
October 31 (in millions) 2007 2006
Accounts receivable, net $13,420 $10,873
HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31 (in millions)
2007 2006 2005
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period $220 $227 $286
Increase in allowance from acquisition 245 3 4
Addition of bad debts provision 32 37 17
Deductions, net of recoveries (29) (48) (76)
Balance, end of period $226 $220 $227
Required:
a. What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?
b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?
c. What amount of bad debts expense did HPQ report each year 2007 through 2006? What amount was actually written off?
Answer:
The answer is below
Explanation:
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report. We have the following:
(a) What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?($ millions)2007, 2006
Gross accounts receivable for year 2007 = $13,646 for year 2006 = 11,093
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?(Round your answers to two decimal places.)($ millions) 2007 2006 Percentage of uncollectible accounts to gross accounts receivable for year 2007 = 1.66% for year 2006 =1.98 %
(c)What amount of bad debts expense did HPQ report each year 2005 through 2007? What amount was actually written off? ($ millions)2007, 2006, 2005,
Bad debt expense for year 2007 = $32. Year 2006 = $37. Year 2005 = $17
Amount actually written off for year 2007 = $29. Year 2006 = $48 Year 2005 = $76
Jeremy Pruitt Ltd is considering the replacement of a delivery truck. The current truck could last for 3 more years. Operating costs are 5000 per year. We are currently depreciating it at 4000 per year. We could sell it at the end of the 3 years for 2000 with a book value of zero. If we purchase the new truck for 32000, we could use three year MACRS. We could sell the old truck now for 7000. Operating costs would drop to 1000 per year. We can sell the new truck for 15000 at the end of the 3rd year. Tax rate is 40%, WACC is 10%. Should we replace the truck?
Answer: NPV = - 4433
As the NPV of the replacement project is negative,
the truck should not be replaced.
Explanation:
0 1 2 3
Savings in operating costs (5000-1000): 4000 4000 4000
Incremental depreciation:-
Depreciation on the new truck 10666 14224 4739
Depreciation on the old truck 4000 4000 4000
Incremental depreciation 6666 10224 739
Incremental NOI -2666 -6224 3261
Tax at 40% -1066 -2490 1304
Incremental NOPAT -1599 -3734 1956
Add: Incremental depreciation 6666 10224 739
Incremental OCF 5066 6490 2696
Capital expenditure:-
Cost of new truck 32000
Less: After tax salvage value of old
NOTE THAT, the book value = 4000*3 =
$12,000 (depreciation per annum is 4000
and three years life is left for the old machine)
truck = 7000 + (12000-7000) × 40% = 9000
Net initial investment 23000
Incremental terminal salvage value:-
After tax salvage value of new
truck = 15000 - (15000-2371)× 40% = 9948
Less: After tax salvage value lost on old
truck = 2000 × (1 - 40%) = 1200
Incremental net residual value 8748
After tax annual cash flows -23000 5066 6490 11444
PVIF at 10% 1 0.90909 0.82645 0.75131
PV at 10% -23000 4606 5363 8598
NPV -4433
CONCLUSION:
As the NPV of the replacement project is negative,
the truck should not be replaced.
A client agrees to pay a contractor $15,000 down towards a $45,000 job.
When his accountant is journalizing the transaction, how much should be
posted as accounts receivable?
A. $15,000
B. $0
O C. $45,000
D. $30,000
Each of these is a key element of goal setting:
specific
intelligent
time-bound
measurable
Answer: Specific, Time-bound, measurable
Explanation: Trust me ;)
. A consumer electronics company introduced a new music system into the market with multiple features like built in alarm, mobile and iPod charger, radio and many more. The company is trying to influence the _____ perspective of quality by providing multiple features in a single
Answer:
a. product
Explanation:
Since in the question it is mentioned that the consumer electronics company launched a new music system that contains the various features like alarm, mobile & iPod charger, radio and etc
So here the company wants to influence the product by displaying the features of the company so that the chances of sale of the product could be high
Therefore the option a is correct
marketing costs include what? please be precise
30 POINTS
Answer:
advertising, promotion and public relations
Explanation:
Hope this helps
Answer:
A marketing expense is “an amount of money the company spends on marketing,” according to Cambridge Dictionaries Online. ... Typically, some common marketing expenses include marketing salaries, marketing research, promotions, public relations and advertising costs.
Explanation:
The shoe buyer plans to promote flip-flop sandals at $24.99. The buyer needs to purchase10,000 flip flops for the event. 6,000 flip-flop sandals have been purchased at a cost of $11.50. The planned markup for the event is 59.0%. What will be the average cost of the remaining sandals?
Answer:
$22.04
Explanation:
Sales price per sandal = $24.99
Sales price of 10,000 sandals = $24.99*10,000 = $249,900
Markup percentage = 59%
Cost of 10,000 sandals = $249,900 / 1 + 59%
Cost of 10,000 sandals = $249,900 / 1.59
Cost of 10,000 sandals = $157169.81
Cost of 10,000 sandals = $157,169.81
Less: Cost of 6000 sandals = $69,000 ($11.5*6,000)
Cost of the remaining 4,000 $88,169.81
Average cost of the remaining sandals = $88,169.81/4,000 sandals
Average cost of the remaining sandals = $22.0424525
Average cost of the remaining sandals = $22.04
You hit the lottery! You get offered $10 million now or $1 million a year for 13 years. Assume a 3 percent interest rate. Which would you choose and why
Answer:
I would choose to receive $1 million for 13 years because the present value of the cash flows is greater than 10 million
Explanation:
To determine which option i would choose, i have to calculate the present value of the second option
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 13 = $1 million
I = 3%
Present value = $10,634,955
I would choose to receive $1 million for 13 years because the present value of the cash flows is greater than 10 million - $10,634,955 > $10,000,000
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Option 2 should be considered since it contains more amount of present value as compared to option 1.
Calculation of the present value:
In option 1, it offered $10 million or $10,000,000
While in option 2, the interest rate is 3% and the time period is 13 years Also, the payment is $1 million
So here we need to determine the present value
PV = PMT x (1 - (1+i)-n / i )
PV = 1,000,000 x (1 - (1+0.03)-13 / 0.03 )
PV = 10,634,955.33
Based on this, the option 2 should be considered.
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1. All receivables that are expected to be realized in cash within a year are reported in the __________ section of the balance sheet. current assets investments noncurrent assets current liabilities
Answer:
A. current assets
Explanation:
In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, receivables are current assets on the balance sheet, which are listed in order of liquidity.
All receivables that are expected to be realized in cash within a year are reported in the current assets section of the balance sheet.
Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:
Direct materials $6
Direct labor 4
Overhead (2/3 of which is variable) 9
Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.
Required:
a. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit.
b. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Now what unit price should it charge the distributor if it wishes to increase total operating income by $60,000 more than it would be without accepting the special order?
Answer:
a. $20.00
b. $28,75
Explanation:
Find the total incremental costs to satisfy the special order and add $2.00 profit (because we are aiming for a profit not to just break-even).
Calculation of Total Incremental Unit Costs
Direct materials $6 .00
Direct labor $4.00
Variable Overheads (2/3 × $9) $6.00
Shipping Cost $2.00
Total Incremental Unit Cost $18.00
Add Profit Element $2.00
Unit Selling Price for the Special Order $20.00
In this case no changes will occur on fixed overheads, hence it is irrelevant.
Calculation of Desired Net Operating Income
Sales ($28 × 160,000 units) $4,480,000
Less Product Costs :
Direct materials ($6 .00 × 160,000 units) ($960,000)
Direct labor ($4.00 × 160,000 units) ($640,000)
Variable Overheads ($6.00 × 160,000 units) ($960,000)
Fixed Overheads ($3.00 × 160,000 units) ($480,000)
Current Operating Income $1,440,000
Add Desired Increase in Operating Income $60,000
Desired Operating Income $1,500,000
Unit Profit = $1,500,000 ÷ 160,000 units
= $9.375
Unit Profit = Unit Selling Price - Total Unit Costs - Unit Incremental Profit
therefore,
Unit Selling Price = Unit Profit + Total Unit Costs + Unit Incremental Profit
= $9.375 + $19.00 + $0.375
= $28,75