Answer:
A company mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.
Explanation:
Hope this helps
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000
Ben Testerman 120,000
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.
3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.
Required:
Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Answer:
450000
Explanation:
The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, the share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.
Dennis Ben Randy Total capital
Balance jan1,20Y5 180,000 120,000 - 300,000
Admission of randy - - 75000 75000
Salary Allowance 40000 - - 40000
Remaining income 52800 35200 22000 110,000
Partners withdrawals (46400) (17600) (11000) (75000 )
Balance Dec 31,2015 226400 137600 86000 450000
When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway.
Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Janet places a value of $125,000 on the art piece and that she values this art piece more than any other collector. Suppose that if no one else shows up, Janet simply bids $125,000/2 = $5,000 and wins the piece of art.
The expected price paid by Kenji, with no other bidders present, is $:_________
Suppose the owner Of the artwork manages to recruit another bidder, Manuel, to the auction. Manuel is known to value the art piece at $8,000.
The expected price paid by Kenji, given the presence of the second bidder Manuel, is $:_________
Please find attached
Answer and Explanation:
1. If there are no other bidders present as from question them we can conclude that Kenji would buy the art piece for $5000. See question
2. If there is a bidder present in the name of Manuel who would bid for $8000 then Kenji would bid at $8000 and win the bid for the art piece. See question. Kenji would bid at price of 2nd highest bidder to win the bid for art piece
A _____ has nonprofit status and is owned by its members
A. Securities firm
B. Investment company
C. Savings bank
D. Credit union
Answer:
D Credit Union
Explanation:
We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following about these 2 firms:______.
Stock Price per share # shares outstanding Market Value of Debt
UPS $65 0.7 billion $ 5 billion
FedEx $55 250 million $ 3 billion
We also have the following data on the securities of these firms:_______.
Beta E Beta D
UPS 0.8 0
FedEx 1.1 0.1
Assume that our firm has risk-free debt with market value $20 million and equity with market value $450 million. Assume that taxes are not relevant. Please estimate our firm’s equity beta
Answer:
The answer is "0.85 "
Explanation:
In order to locate a beta of the company, we must find the average beta of unlevered UPS and FedEx and find a levered beta of the company.
Price Outstanding shares(Billion) Market valu of equity(Billion) Market value of debt(billions) D/E Ratio
UPS 65 0.7 45.5 5 0.1099
FedEx 55 0.25 13.75 3 0.2182
[tex]Unlevered \ beta= \frac{levered \ beta}{(1+((1- tax rate)\times(\frac{Debt}{Equity})))}[/tex]
taxes desn't matter , given in the question so, assumed to be 0
[tex]Unlevered \ beta \ for \ UPS= \frac{0.8}{1+(1-0)\times (0.1099)}[/tex]
[tex]= \frac{0.8}{1+(1)\times (0.1099)}\\\\= \frac{0.8}{1+(0.1099)}\\\\= \frac{0.8}{1.1099}\\\\=0.72[/tex]
[tex]Unlevered \ beta \ for \ FedEx= \frac{1.1}{1+(1-0)\times (0.2182)}[/tex]
[tex]= \frac{1.1}{1+(1)\times (0.2182)}\\\\= \frac{1.1}{1+(0.2182)}\\\\= \frac{1.1}{1.2182}\\\\=0.90[/tex]
[tex]Average \ Unlevered \ beta = \frac{0.72+0.90}{2}[/tex]
[tex]= \frac{1.62}{2}\\\\=0.81[/tex]
[tex]\text{levered beta of the delivery service firm }= unlevered \ beta \times(1+(1-taxes) \times (\frac{debt}{equity}))[/tex]
[tex]= 0.81 \times (1+(1-0)\times (\frac{20}{450})\\\\= 0.81 \times (1+(1)\times (0.04)\\\\= 0.81 \times (1+(0.04)\\\\= 0.81 \times (1.04)\\\\=0.85[/tex]
Tom and Betsy, who are married filing jointly, reported a standard deduction of $24,000 on their 2018 tax return. They paid $500 to the state for income taxes in 2018. In 2019, they received a $125 refund of state taxes paid in 2018. What is the amount that Tom and Betsy need to report on their 2019 tax return?
Answer:
$0
Explanation:
Since Tom and Betsy didn't itemize their deductions in 2018 (they chose the standard deduction), they didn't include the state taxes in their tax filing. Since the state taxes were not used by Tom and Betsy to reduce their federal income taxes, then any refund will not be included in their current income. Only if state taxes are used to lower federal taxes, do taxpayers need to include any refund.
Mechanistic vs. Organic Structures Managers taking a contingency approach must consider numerous factors in designing the best kind of structure for their particular organization at that particular time. British behaviorists Tom Burns and G.M. Stalker identified what they call mechanistic and organic structures. Depending on the task environment and a variety of other considerations, the type of organizational structure chosen can be critical to organizational success. This exercise will test your knowledge of the characteristics of each of these types of organizational structure.
Select the most appropriate category (mechanistic or organic structure) for each of the characteristics of organizations.
1. Few rules and procedures
2. Narrow span of control
3. Specialized tasks
4. Many teams or task forces
5. Many rules and procedures
6. Decentralized hierarchy of authority
7. Flatter structure
8. Informal communication
9. Taller structure
10. Centralized hierarchy of authority
11. Wider span of control
12. Shared tasks
13. Formalized communication
14. Few teams or task forces
Category:
a. Mechanistic Organizations
b. Organic Organizations
Answer:
Mechanistic Organizations Organic Organizations
- Few teams and task force - Few rules and procedures
- Formalized communication - Shared tasks
- Centralized hierarchy of authority - Flatter structure
- Narrow span of control - Many teams and task force
- Many rules and procedures - Decentralized hierarchy of authority
- Specialized task - Informal communication
- Taller structure - Narrow span of control
The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original payment was initially debited to a prepaid asset account. The appropriate journal entry has been recorded on December 31, 20x9. The balance in the prepaid asset account on December 31, 20x9 should be Select one: a. The same as the original payment b. The same as it would have been if the original payment had been debited initially to an expense account c. Higher than if the original payment had been debited initially to an expense account d. Zero Check
Answer:
b. The same as it would have been if the original payment had been debited initially to an expense account
Explanation:
We can use an example to explain this:
original journal entry to record a 3 year insurance policy on January 1 is:
Dr Prepaid insurance 3,600
Cr Cash 3,600
Adjusting entry on December 31
Dr Insurance expense 1,200
Cr Prepaid insurance 1,200
balance of prepaid insurance = $3,600 - $1,200 = $2,400
If instead of recording prepaid insurance on January 1, you recorded insurance expense:
Dr Insurance expense 3,600
Cr Cash 3,600
Adjusting entry on December 31
Dr Prepaid insurance 2,400
Cr Insurance expense 2,400
balance of prepaid insurance = $2,400
King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $8 each. During the month, King Costume purchased 41 additional masks for $10 each. At the end of the month, King counted its inventory and found that 3 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:
Answer:
$464
Explanation:
Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.
LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.
Calculation of Cost of Goods Sold :
41 unit × $10 = $440
3 units × $8 = $24
Total = $464
The cost of goods sold for the month is: $464
Which of the following influences what you choose to wear
Your activities
All of the Above
Basic needs
Your personal preferences
Answer:
all of the above dnnxndncnvhhdbdbdbd
List 6 mistakes that can be made during an interview.
Answer:
1.Appearing Disinterested
2.Answering a Call or Texting
3.Dressing Inappropriately
4.Talking Negatively About a Current or Previous Employer
5.Body Language
6.Being Vague
Explanation:
Hope this helps !
Poor interview preparation is a clear killer, and 75% of interviews end in failure because the applicant wasn't prepared for some of the questions asked or didn't know enough about the employer.
What are mistakes that can be made during an interview ?Failing to conduct research The biggest error all of our experts mentioned was showing up unprepared for an interview. This could be not doing your homework on the business, not giving the job enough consideration, or not knowing who you're meeting. However, it could also refer to not having a plan for your conversation.
Most applicants anticipate being questioned. When one person asks every question and the other person responds, an interrogation has taken place. In an interview, questions are posed and answered in the context of a business dialogue. applicants who anticipate unwilling interrogator.
Lack of planning. Some recruiting managers favour conducting interviews in a more "spontaneous" manner.
becoming very anxious.acting too carelessly.being very zealous.intimidating potential employees.Lying. accepting bias.Learn more about Interveiw here
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If there is a technological advance that lowers the cost of producing x-ray machines, then we can say that the
Answer:
C) quantity supplied of those machines will go up.
Explanation:
the options are missing:
A ) quantity demanded for those machines will increase.
B) demand for those machines will shift right.
C) quantity supplied of those machines will go up.
D) quantity supplied of those machines will decrease.
If production costs decrease, the supply curve will shift to the right, increasing the total quantity supplied while decreasing the sales price. Advances in technology increase productivity, which allows companies to supply a higher amount of goods at lower prices, which in turn increases the total quantity demanded for these goods.
If the amount of credit is 300,000 how much is the discount if the debtor is given a credit term of 2/10 N/30?show your
Answer:
6,000
Explanation:
In credit sales, 2/10 Net 30 means that the seller has offered the customer a trade discount. 2/10 net 30 is a conditional discount available if payment is made in 10 days. It's a 2% discount should the customer pay in 10 days, if not so, the full amount is due within 30 days.
The discount amount for 300,000 is 2 percent of 300,000.
=2/100 x 300,000
=0.02 x 300,000
=6,000
Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $960,000, and the LLC has debts of $624,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.
Ordinary income $900,000
W-2 wages to employees 200,000
Depreciation expense 300,000
Interest income from bond 4,000
Long-term capital loss 6,000
Short-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Unadjusted basis of partnership depreciable property 1,600,000
Year-end LLC debt payable to unrelated parties is $140,000.
Required:
What income, gains, losses, and deductions does Amy report on her income tax return?
Answer: See explanation
Explanation:
Share of ordinary income:
= (Ordinary income - Wages - Depreciation)/2
= (900,000 - 200,000 - 300,000)/2
= 400,000/2
= 200,000
Share of net short term capital gain
= (12,000 - 6,000) × 50%
= 6,000 × 0.5
= 3,000
Share of interest income
= 4000 × 50%
= 4000 × 0.5
= 2000
Share of charitable contribution deduction
= 4000 × 50%
= 4000 × 0.5
= 2000
Bramble Corp. sells MP3 players for $60 each. Variable costs are $30 per unit, and fixed costs total $120000. How many MP3 players must Bramble sell to earn net income of $300000?
Answer:
Break-even point in units= 14,000 units
Explanation:
Giving the following information:
Selling price= $60
Variable costs are $30 per unit
Fixed costs total $120,000.
Desired profit= $300,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (120,000 + 300,000) / 30
Break-even point in units= 14,000 units
Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations.
May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,890 of equipment on credit.
5 The company paid $750 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant’s salary for the first half of this month.
20 The company received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.
25 The company received $3,200 cash payment for the services provided on May 22.
26 The company paid $1,890 cash for the equipment purchased on May 3.
27 The company purchased $80 of equipment on credit.
28 The company paid $750 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $280 cash for this month’s utilities.
31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Required:
a. Determine the final total for each account and verify that the equation is in balance.
b. Prepare an Income Statement for May,
c. Prepare a statement of Owner's equity for May,
d. Prepare 31 Balance Sheet.
e. Prepare Cash flows for May.
Answer:
a) May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
Dr Cash 40,000
Cr Common stock 40,000
May 1 The company rented a furnished office and paid $2,200 cash for May’s rent.
Dr Rent expense 2,200
Cr Cash 2,200
May 3 The company purchased $1,890 of equipment on credit.
Dr Equipment 1,890
Cr Accounts payable 1,890
May 5 The company paid $750 cash for this month’s cleaning services.
Dr Cleaning expenses 750
Cr Cash 750
May 8 The company provided consulting services for a client and immediately collected $5,400 cash.
Dr Cash 5,400
Cr Service revenue 5,400
May 12 The company provided $2,500 of consulting services for a client on credit.
Dr Accounts receivable 2,500
Cr Service revenue 2,500
May 15 The company paid $750 cash for an assistant’s salary for the first half of this month.
Dr Wages expense 750
Cr Cash 750
May 20 The company received $2,500 cash payment for the services provided on May 12.
Dr Cash 2,500
Cr Accounts receivable 2,500
May 22 The company provided $3,200 of consulting services on credit.
Dr Accounts receivable 3,200
Cr Service revenue 3,200
May 25 The company received $3,200 cash payment for the services provided on May 22.
Dr Cash 3,200
Cr Accounts receivable 3,200
May 26 The company paid $1,890 cash for the equipment purchased on May 3.
Dr Accounts payable 1,890
Cr Cash 1,890
May 27 The company purchased $80 of equipment on credit.
Dr Equipment 80
Cr Accounts payable 80
May 28 The company paid $750 cash for an assistant’s salary for the second half of this month.
Dr Wages expense 750
Cr Cash 750
May 30 The company paid $300 cash for this month’s telephone bill.
Dr Telephone expense 300
Cr Cash 300
May 30 The company paid $280 cash for this month’s utilities.
Dr Utilities expense 280
Cr Cash 280
May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Dr Dividends 1,400
Cr Cash 1,400
debit credit
Cash $42,780
Equipment $1,970
Accounts payable $80
Common stock $40,000
Service revenue $11,100
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280
Dividends $1,400
totals $51,180 $51,180
income statementService revenue $11,100
Expenses:
Rent expense $2,200Cleaning expenses $750Wages expense $1,500Telephone expense $300Utilities expense $280 ($5,030)Net income $6,070
statement of owner's equityBeginning balance $0
Common stocks issued $40,000
Net income $6,070
Sub-total $46,070
Dividends ($1,400)
Ending balance $44,670
balance sheetAssets:
Cash $42,780
Equipment $1,970
Total assets $44,750
Liabilities and equity:
Accounts payable $80
Common stock $40,000
Retained earnings $4,670
Total liabilities and equity $44,750
cash flow statementCash flows from operating activities:
Net income $6,070
Increase in accounts payable $80
net cash from operating activities $6,150
Cash flows from financing activities:
Purchase of equipment ($1,970)
Cash flow from financing activities:
Common stocks issued $40,000
Dividends paid ($1,400)
net cash fro financing activities $38,600
net cash increase $42,780
beginning cash balance $0
ending cash balance $42,780
a.1. The final total for each account is determined in the general ledger as follows:
Cash Account
Date Account Titles Debit Credit
May 1 Common Stock $40,000
May 1 Rent Expense $2,200
May 5 Cleaning Services Expense $750
May 8 Consulting Fees $5,400
May 15 Salaries Expense $750
May 20 Accounts Receivable $2,500
May 25 Accounts Receivable $3,200
May 26 Accounts Payable $1,890
May 28 Salaries Expense $750
May 30 Telephone Expense $300
May 30 Utilities $280
May 31 Dividends $1,400
May 31 Balance $42,780
Totals $51,100 $51,100
Accounts ReceivableDate Account Titles Debit Credit
May 12 Consulting Fees $2,500
May 20 Cash $2,500
May 22 Consulting Fees $3,200
May 25 Cash $3,200
Totals $5,700 $5,700
EquipmentDate Account Titles Debit Credit
May 3 Accounts Payable $1,890
May 27 Accounts Payable 80
May 31 Balance $1,970
Totals $1,970 $1,970
Common StockDate Account Titles Debit Credit
May 1 Cash $40,000
Accounts PayableDate Account Titles Debit Credit
May 3 Equipment $1,890
May 26 Cash $1,890
May 27 Equipment $80
May 31 Balance $80
Totals $1,970 $1,970
Consulting FeesDate Account Titles Debit Credit
May 8 Cash $5,400
May 12 Accounts Receivable $2,500
May 22 Accounts Receivable 3,200
May 31 Balance $11,100
Totals $11,100 $11,100
Rent ExpenseDate Account Titles Debit Credit
May 1 Cash $2,200
Cleaning Services ExpensesDate Account Titles Debit Credit
May 5 Cash $750
Wages ExpenseDate Account Titles Debit Credit
May 15 Cash $750
May 28 Cash $750
May 31 Balance $1,500
Totals $1,500 $1,500
Telephone ExpensesDate Account Titles Debit Credit
May 30 Cash $300
Utilities ExpenseDate Account Titles Debit Credit
May 30 Cash $280
DividendsDate Account Titles Debit Credit
May 31 Cash $1,400
a.2. The determination that the equation is in balance is established through the Trial Balance as follows:
Date Account Titles Debit Credit
Cash $42,780
Common stock $40,000
Equipment $1,970
Accounts payable $80
Consulting fees $11,100
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280
Dividends $1,400
Totals $51,180 $51,180
b. The preparation of the income statement is as follows:
The Gram Co.
Income StatementFor the month ended May 31
Service revenue $11,100
Expenses:
Rent expense $2,200
Cleaning expenses $750
Wages expense $1,500
Telephone expense $300
Utilities expense $280 ($5,030)
Net income $6,070
c. The preparation of the statement of owner's equity is as follows:
The Gram Co.
Statement of Owner's EquityAs of May 31
Common stocks issued $40,000
Net income $6,070
Dividends ($1,400)
Ending balance $44,670
d. The preparation of the Balance Sheet is as follows:
The Gram Co.
Balance SheetAs of May 31
Assets:
Cash $42,780
Equipment $1,970
Total assets $44,750
Liabilities and equity:
Accounts payable $80
Equity:
Common stock $40,000
Retained earnings $4,670
Total equity $44,670
Total liabilities and
owner's equity $44,750
e. The preparation of the Statement of Cash Flows is as follows:
The Gram Co.
Statement of Cash FlowsOperating activities:
Net income $6,070
Increase in accounts payable $80
Net operating cash $6,150
Investing activities:
Purchase of equipment ($1,970)
Financing activities:
Common stocks issued $40,000
Dividends paid ($1,400)
Net financing cash $38,600
Net cash flows $42,780
Reconciliation:Beginning cash balance $0
Net cash flows $42,780
Ending cash balance $42,780
Data Analysis:May 1 Cash $40,000 Common Stock $40,000
May 1 Rent Expense $2,200 Cash $2,200
May 3 Equipment $1,890 Accounts Payable $1,890
May 5 Cleaning Services Expense $750 Cash $750
May 8 Cash $5,400 Consulting Fees $5,400
May 12 Accounts Receivable $2,500 Consulting Fees $2,500
May 15 Salaries Expense $750 Cash $750
May 20 Cash $2,500 Accounts Receivable $2,500
May 22 Accounts Receivable $3,200 Consulting Fees $3,200
May 25 Cash $3,200 Accounts Receivable $3,200
May 26 Accounts Payable $1,890 Cash $1,890
May 27 Equipment $80 Accounts Payable $80
May 28 Salaries Expense $750 Cash $750
May 30 Utilities (Telephone) $300 Cash $300
May 30 Utilities $280 Cash $280
May 31 Dividends $1,400 Cash $1,400
Learn more about preparing financial statements at https://brainly.in/question/33221066
20 points I need help Which tasks are common to all Education and Training career pathways?
Answer:
teaching students and collaborating with teachers on instructional content
Explanation:
At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to materials, and 15% complete as to conversion. During the month the department started 67,000 units and transferred 72,500 units to the next manufacturing department. At the end of the month, the department had 11,500 units in inventory, 85% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
A) 82,275 materials; 79,400 conversion
B) 65,275 materials; 62,400 conversion
C) 64,450 materials; 69,550 conversion
D) 77,175 materials; 79,400 conversion
E) 77,175 materials; 76,850 conversion
Answer:
A) 82,275 materials; 79,400 conversion
Explanation:
Calculation of the Equivalent Units of Production with respect to Raw Materials and Conversion Costs
1. Raw Materials
Ending Work In Process (11,500 × 85%) = 9,775
Completed and Transferred (72,500 × 100%) = 72,500
Equivalent Units of Production with respect to Materials = 82,275
2. Conversion Costs
Ending Work In Process (11,500 × 60%) = 6,900
Completed and Transferred (72,500 × 100%) = 72,500
Equivalent Units of Production with respect to Materials = 79,400
Financial Assertions and Audit Objectives. You are engaged to examine the financial statements of Spillane Company for the year ended December 31. Assume that on November 1, Spillane borrowed $500,000 from Second National Bank to finance plant expansion. The long-term note agreement provided for the annual payment of principal and interest over five years. The existing plant was pledged as security for the loan. Due to the unexpected difficulties in acquiring the building site, the plant expansion did not begin on time. To use the borrowed funds, management decided to invest in stocks and bonds and on November 16, invested the $500,000 in publicly traded securities
Required:
Develop specific assertions (audit objectives) related to securities (assets) based on management’s five (PCAOB) general assertions.
Answer:
Assertion 1) Existence or occurrence: the company must provide the loan documents along with proof that they actually purchased the stocks and bonds using the loan money. It would also help to have a document explaining why the building site couldn't be acquired as planned.
Assertion 2) Rights and obligations: all the legal paperwork regarding the loan, the mortgage on the existing plant and the stocks and bond paperwork must be presented.
Assertion 3) Completeness: all the relevant information must be readily available including building titles, inventories, equipment, cash receipts, etc. The auditor should be allowed to physically visit the plant and confirm the documents.
Assertion 4) Valuation and allocation: information regarding the current market values of the building, inventories and equipment should be given. The auditor should be able to confirm if the depreciation values and market values are consistent. Also, the auditor must have access to accounts receivables and should be able to analyze them to check for any inconsistencies.
Assertion 5) Presentation and disclosure: the auditor should be able to check expense accounts and capitalization accounts, and analyze them. E.g. equipment or machinery repairs must be treated as expenses and not capitalized.
Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.
Answer:
The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.
January 1, 2021, equipment leased from Deal leasing
Dr Right of use asset 405,541.20
Cr Lease liability 405,541.20
the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20
January 1, 2021, first lease payment
Dr Lease liability 60,000
Cr Cash 60,000
December 31, 2021, depreciation expense on leased asset
Dr Depreciation expense 40,554.12
Cr Accumulated depreciation 40,554.12
depreciation expense = $405,541.20 / 10 = $40,554.12
December 31, 2021, interest expense on asset lease
Dr Interest expense 34,554.12
Cr Interest payable 34,554.12
interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12
The following data pertain to the Oneida Restaurant Supply Company for the year just ended.
Budgeted sales revenue $205,000
Actual manufacturing overhead 336,000
Budgeted machine hours (based on practical capacity) 8,000
Budgeted direct-labor hours (based on practical capacity) 20,000
Budgeted direct-labor rate $14
Budgeted manufacturing overhead $364,000
Actual machine hours 11,000
Actual direct-labor hours 18,000
Actual direct-labor rate $15
Required:
a. Compute the firm's predetermined overhead rate for the year using each of the following common cost drivers: (a) machine hours, (b) direct-labor hours, and (c) direct-labor dollars.
b. Calculate the over-applied or under-applied overhead for the year using each of the cost drivers listed above.
Answer:
Predetermined overhead rate = Budgeted manufacturing rate/Allocation base
a. Machine hours
= 364,000 / 8,000
= $45.5
Predetermined overhead rate = $45.5
Direct-labor hours
= 364,000 / 20,000
= $18.2
Predetermined overhead rate = $18.2
Direct-labor dollars
Budgeted labor hours = 20,000 * $14 = $280,000
Predetermined overhead rate = 364,000 / $280,000 = $1.3
b. Machine hours
Manufacturing overhead applied = Actual machine hours * Predetermined overhead rate = $45.5 * 11,000 = $500,500
Over/Under applied overhead = 336,000 - 500,500
Over-applied overhead = $164,500
Direct-labor hours
Manufacturing overhead applied = Actual direct-labor hours * Predetermined overhead rate = $18.2 * 18,000 = $327,600
Over/Under applied overhead = 336,000 - 327,600
Under-applied overhead = $8400
Direct-labor dollars
Manufacturing overhead applied = Actual direct-labor hours * Actual direct-labor rate * Predetermined overhead rate
Manufacturing overhead applied = 18,000 * $15 * $1.3 = 351,000
Over/Under applied overhead = 336,000 - 351,000
Over-applied overhead = $15,000
we know that
Predetermined overhead rate = Budgeted manufacturing rate ÷ Allocation base
a. Machine hours
= 364,000 ÷8,000
= $45.5
Predetermined overhead rate = $45.5
Direct-labor hours
= 364,000 ÷ 20,000
= $18.2
Predetermined overhead rate = $18.2
Direct-labor dollars
Budgeted labor hours = 20,000 × $14 = $280,000
Predetermined overhead rate = 364,000 ÷ $280,000 = $1.3
b. Machine hours
Manufacturing overhead applied = Actual machine hours × Predetermined overhead rate
= $45.5 × 11,000
= $500,500
So,
Over/Under applied overhead = 336,000 - 500,500
Over-applied overhead = $164,500
Direct-labor hours
Manufacturing overhead applied = Actual direct-labor hours × Predetermined overhead rate
= $18.2 × 18,000
= $327,600
Over/Under applied overhead = 336,000 - 327,600
Under-applied overhead = $8400
Direct-labor dollars
Manufacturing overhead applied = Actual direct-labor hours × Actual direct-labor rate × Predetermined overhead rate
= 18,000 × $15 × $1.3
= 351,000
Over/Under applied overhead = 336,000 - 351,000
Over-applied overhead = $15,000
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Hussein got a call yesterday from First Bank, the company that issued his credit card inquiring about an $105.00 charge made in Buenos Aires, Argentina. Upon learning that Hussein was in Detroit and had not made this purchase, the bank quickly took steps to cancel the card and issue a new one. Given the circumstances that Hussein's credit card number had an illegal transaction, he may also want to:____________.
A) check his computer's firewall to make sure it's working.
B) cancel his account and eliminate credit cards from his life.
C) change his passwords and store them in a password manager.
D) diversify his spending habits by using one of several credit cards when making purchases.
Answer:
C) change his passwords and store them in a password manager.
Explanation:
Hussein, being a victim of cyber theft of money from his bank account, after having informed bank about the fraudulent transaction, should :-
Take further precautionary measures for modifying & safely saving other related crucial information, like passwords. So, he should change his passwords and store them in a password manager.
Rachel pushed very hard to go with Project A rather than Project B. There have been several cost overruns, the project is two weeks beyond its projected finish date, and the technology just isn't working out as planned. Rachel increases the funding for the third time and hires three new designers to help revamp the look of the product. Rachel is engaging in _____.
Answer: escalation of commitment
Explanation:
Escalation of commitment is when an individual or firm chooses an option which tends to be unsuccessful but the individual or firm still continues with the project because there has been investment which has already been made on it.
From the question, we are told that Rachel pushed very hard to go with Project A rather than Project B. From the information given, despite the fact that project A has been unsuccessful, Rachel continued with it and invested more in it rather than changing or leaving it for project B. This shows that Rachel is engaging in escalation of commitment.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000.
Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer: $412,600
Explanation:
AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings
Increase in Assets
= 5,000,000 * 15%
= $750,000
Increase in Liabilities
For liabilities use only the Accounts payable and Accruals.
= (450,000 + 450,000) * 15%
= $135,000
Additional to Retained Earnings
= After tax Profit * ( 1 - Payout ratio)
= (9,200,000 * 4%) * ( 1 - 45%)
= $202,400
= 750,000 - 135,000 - 202,400
= $412,600
Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an annual operating cost of $160,000 per year, and $125,000 salvage value after its three-year life. Method 2 will cost $830,000 with an annual operating cost of $120,000. and a $240,000 salvage value after its five-year life. The company has asked you to determine which method is better, but it Wants the analysis done over a three-year planning period. The salvage value of Method 2 will be 35% higher after three years than it is after five years. If the company's minimum attractive rate of return is 10% per year, which method should the company select?
Answer:
the company should choose method 1
Explanation:
Method 1 Method 2
Initial outlay $550,000 $830,000
operating costs (years 1,2,3) $160,000 $120,000
salvage value $125,000 $324,000
we must determine which alternative has the lowest present value:
method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 = $853,982
method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.
Required:
Calculate the cost per equivalent unit of materials.
Answer:
Cost per equivalent unit of material = $2.06
Explanation:
Total cost of material= Cost of material in beginning WIP + Cost of material incurred in February
= $48,000 + $328,050
= $376,050
Equivalent units = Number of units completed and transferred+ Ending inventory
= 150,000 units + 32,500 units
= 182,500 units
Cost per equivalent unit of material = Total cost of direct material / Equivalent units
= $376,050 / 182,500 units
= $2.06
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
200,000
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
Cash flow from operating activities
Net Income 5,000,000
Less Depreciation (450,000)
Cashflow from operations 5,450,000
Cash flow from investing activities
Purchase of Fixed assets 5,400,,000
Cash flow from investing activities
Issue of long term debt 1,000,000
Dividend paid (750,000)
Cash generated from investing activities 250,000
Change in cash 300,000
Beginning balance 100,000
Closing balance 200,000
Which example is not an advantage of b entrepreneurship’s
The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms n/60, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31.
Amalgamated sold merchandise to American Fashions at a selling price of $230,000. The merchandise had cost Amalgamated $175,000. Two days later, American Fashions returned goods that had been sold to the company at a price of $20,000 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $5,000 to American Fashions. The goods returned by American Fashions had cost Amalgamated $15,270. Just three days later, American Fashions paid Amalgamated, which settled all amounts owed.
Required:
a. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Readers' Corner.
b. Prepare the journal entries that Readers’ Corner would record and show any computations.
Answer:
Transaction Sales Sales Sales Net Cost of Gross
Revenues returns allowances sales goods sold profit
a. $230,000 230,000 175,000 55,000
b. 20,000 5,000 -25,000 15,270 9,730
c. - - - - - No effect
S/n General Journal Debit$ Credit$
a(1) Accounts receivable 230,000
Sales revenues 230,000
(Sales on account to American Fashions)
a(2) Cost of goods sold 175,000
Inventory 175,000
(Recorded cost of goods sold)
b(1) Sales allowances and returns 25,000
(20000+5000)
Accounts receivable 25,000
(Sales allowances and returns granted)
b(2) Inventory 15,270
Cost of goods sold 15,270
(Cost of goods sold on goods returned)
c Cash 205,000
(230,000-25,000)
Accounts receivable 205,000
A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company’s strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company’s performance to that of its competitors, or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Most decision makers and analysts use five groups of ratios to examine the different aspects of a company’s performance. Indicate whether each of the following statements regarding financial ratios are true or false?
a. The ratios provide an accurate and thorough representation of the Chinese company’s performance.b. The analysis likely includes incorrect and misleading conclusions.
Answer:
a. False
b. True
Explanation:
Ratio analysis is a very useful method of analyzing a company however it is not necessarily very in-depth. If a company seems to be performing below the industrial average, it would be prudent to check the reasons why the company is doing so.
The advantage of ratio analysis in this instance is that it would help point you in the right direction to know what accounts to analyze more intensely to find out why the Chinese company is not performing up to standard.
Ratio analysis are good but they do not always provide an accurate and thorough representation of a company’s performance therefore relying solely on ratios will lead to an analysis that likely includes incorrect and misleading conclusions.
Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.
Answer:
The correct option is C) It should derecognize these receivables
Explanation:
Based on the information given the right and appropriate treatment of the ACCOUNT RECEIVABLES is to derecognized the receivable reason been that Alpha Inc does not have the right to either sell or pledge the receivables neither can he repurchased the receivable from the financial institution which is the bank despite the fact that the cash flows amount is been remitted to the bank at the end of every month.