Answer:
cost of goods manufactured= $98,000
Explanation:
Giving the following information:
Direct materials used $19,000
Direct labor used 24,500
Factory overhead 55,100
Beginning work in process inventory 10,700
Ending work in process inventory 11,300
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 10,700 + 19,000 + 24,500 + 55,100 -11,300
cost of goods manufactured= $98,000
Indicate whether the following statements about the conceptual framework are true or false. (a) The fundamental qualitative characteristics that make accounting information useful are relevance and verifiability. select an option (b) Relevant information only has predictive value, confirmatory value, or both. select an option (c) Information that is a faithful representation is characterized as having predictive or confirmatory value. select an option (d) Comparability pertains only to the reporting of information in a similar manner for different companies. select an option (e) Verifiability is solely an enhancing characteristic for faithful representation. select an option (f) In preparing financial reports, it is assumed that users of the reports have reasonable knowledge of business and economic activities. select an option
Answer:
True or False Statements about the conceptual framework:
(a) False: The fundamental qualitative characteristics that make accounting information useful are relevance and faithful representation, which suggest materiality and completeness respectively.
(b) False: Relevant information must also be material in a financial statement user's decision, in addition to having predictive and confirmatory values.
(c) False: It is information that is relevant that is characterized as having predictive or confirmatory value, and not information that shows faithful representation.
(d) False: Comparability also refers to comparisons of a firm over time (which is appropriately described as consistency). This is in addition to the similar reporting of information by different companies.
(e) False: Enhancing characteristics do not relate only to faithful representation but also to relevance.
(f) True.
Explanation:
Faithful representation implies completeness. Relevance means that the disclosure will attract important consideration and is material to the matter. Therefore, users of financial reports base their decisions on relevant information and not irrelevant details.
On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $410,000 and $70,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 63,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,150,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2021.
Answer:
$3.02 per share
Explanation:
The computation of the earning per share is shown below:
we know that
Earnings per share = (Net income - preferred dividend) ÷ Weighted average outstanding common shares
= ($2,150,000 - $70,000) ÷ 688,000 shares
= $3.02 per share
Date Particulars No. of shares
01/01-31/12 610000 × 12 ÷ 12 (610000 × 1.04) $634,400
28/02-31/12 63000 × 10 ÷ 12 (52500 × 1.04) $54,600
01/07-31/12 (2000) × 6 ÷ 12 -$1,000
Weighted average outstanding common shares 688,000
As in any crisis, opportunities develop. Name three firms that have maximized their competitive advantage during this time. Name three who have failed. Explain both the success and failures of these firms.
Answer:
Firms that maximized their competitive advantage:
Pfizer
Amazon
Netflix
Firms who failed during Coviid crisis:
LasVegas Monorail
Bounce for fun - New York
Gold's Gym International
Explanation:
The world is going through very tough period. Its been more than a year that there have been complete lockdown in many countries. COVIiD - 19 virus has created great challenges for humans to survive. It has also impacted businesses and financial sectors. Some businesses were able to boost their sales and they exploit the pandemic while some companies were struggling to avoid bankruptcy and shutdowns. Pfizer has turned this pandemic into an opportunity to boost their business sales by introducing vaccine against this virus. While on the other hand some businesses were moved towards bankruptcy as there is closure for more than a year due to social distancing.
Big Canyon Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1,000, and a price of $957. At this price, the bonds yield 9 percent. What must the coupon rate be on the bonds
Answer:
8.48%
Explanation:
Calculation to determine What must the coupon rate be on the bonds
First step is to find the coupon rate of the bond.
Coupon payment = $957 = C(PVIFA9.0%,16) + $1,000(PVIF9.0%,16)
Solving for the coupon payment will give us C= $84.83
Now let calculate the coupon rate using this formula
Coupon rate= Coupon payment/ Par value
Let plug in the formula
Coupon rate = $84.83 / $1,000
Coupon rate = .0848*100
Coupon rate =8.48%
Therefore the coupon rate on the bonds is 8.48%
A net worth statement is also called which of the following? A) personal liabilities sheet b) personal estate list c) personal assets list d) personal financial statement
A firm has net working capital of $640, total liabilities of $4,180, and total assets of $6,230. During the year sales were $5,000, net income, was $100, and paid taxes of $50. What was the Return on Equity during the year
Answer:
The answer is in explainiation
Explanation:
640/4180
6230-5000
+50=100
answer 30
Bramble Corp. required production for June is 222000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 390000 and 420000 pounds, respectively. How many pounds of direct material Z must be purchased
Answer:
Purchases= 696,000 pounds
Explanation:
Giving the following information:
Production= 222,000 units.
To make one unit of a finished product, three pounds of direct material Z are required.
To calculate the purchases of direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 222,000*3 + 420,000 - 390,000
Purchases= 696,000 pounds
At the end of May, the following adjustment data were assembled.
a. Insurance expired during May is $275.
b. Supplies on hand on May 31 are $715.
c. Depreciation of office equipment for May is $330.
d. Accrued receptionist salary on May 31 is $325.
e. Rent expired during May is $1,600.
f. Unearned fees on May 31 are $3,210.
Required:
Journalize the adjusting entries.
Answer and Explanation:
The adjusting entries are as follows:
a. Insurance expense $275
To Prepaid insurance $275
(To record the insurance expense)
b. Supplies expense $785 ($1,500 - $715)
To Supplies $785
(To record the supplies expense)
We assume the balance of supplies before adjustment is $1,500
c. Depreciation - office equipment $330
To Accumulated depreciation $330
( To record the depreciation expense)
d. Salary Dr $325
To Accrued salary $325
(To record the accrued salary)
e. Rent expense $1,600
To Prepaid rent $1,600
(To record the rent expense )
f. Unearned fees $790
To Fees revenue $790
(To record the unearned fees is recorded)
We assume the balance of unearned fees before adjustment is $4,000
Therefore, $790 is arrive from
= $4,000 - $3,210
= $790
In a Harvard print journal and ejournal article references for a reference list, which elements, if any, are placed in round brackets?
Author and journal title.
Author and issue number.
Year of publication and issue number, if there is one.
Article title and year of publication.
Answer: Year of publication and issue number, if there is one.
Explanation:
There are quite a number of referencing style conventions available in the world today with some of the most prominent being the APA style, MLA and the Chicago style.
Harvard has its own referencing style that may not be as popular as the above but is very well known nonetheless. When referencing using the Harvard style and the year of publication and issue number needs to be included in a print or e-journal reference, it is to be placed in a round bracket. If there isn't any then there is no need.
A portfolio is invested 20 percent in Stock G, 60 percent in Stock J, and 20 percent in Stock K. The expected returns on these stocks are 9 percent, 15 percent, and 21 percent, respectively. What is the portfolio's expected return
Answer:
the expected return on the portfolio is 15%
Explanation:
The computation of the expected return on the portfolio is shown below:
The Portfolio expected return is
= (Respective returns × Respective probabilities)
= (0.2 × 0.09) + (0.6 × 0.15) + (0.2 × 0.21)
= 15%.
Hence, the expected return on the portfolio is 15%
Basically we applied the above formula for the same.
You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.3 percent and Stock Y with an expected return of 8.1 percent. Your goal is to create a portfolio with an expected return of 12.5 percent. All money must be invested. How much will you invest in Stock X
Answer:
$14,194
Explanation:
Wy + Wx = 1
Wy*Ry + Wx*Rx = 12.5%
So, let input the values
Wy*8.1% + (1-Wy)*14.3% = 12.5%
Wy*8.1% + 14.3%-14.3%*Wy = 12.5%
14.3%*Wy - Wy*8.1% = 1.8%
Wy*6.2% = 1.8%
Wy = 0.2903
Weight of X in portfolio = 1 - 0.2903
Weight of X in portfolio = 0.7097
Money invested in stock X = $20,000*0.7097
Money invested in stock X = $14,194
Downtown Stores can issue equity at a flotation cost of 8.76 percent and debt at 5.93 percent. The firm currently has a debt-equity ratio of .37 but prefers a ratio of .35. What should this firm use as their weighted average flotation cost
Answer:
8.03%
Explanation:
The computation is shown below:
We know that
Total capital = Debt + Equity
= 0.35 + 1
= 1.35
Now
Weight of debt(Wd) = Value of debt ÷ Total capital
= 0.35 ÷ 1.35
Weight of equity(We) = 1 ÷ 1.35
Now Weighted average flotation cost is:
= Flotation cost of equity × weight of equity + Flotation cost of debt × Weight of debt
= (8.76% × 1 ÷ 1.35) + (5.93% × 0.35 ÷ 1.35)
= 8.03%
Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:
Answer:
Following are the response to the given question:
Explanation:
Revenue = $2,600.
Reduced price Term is 1/10, net 30 that is 1% reduction upon on accounts receivable who will pay in 10 days of sales is authorized. Its reduction is recorded in the general ledger and the cash received was entered in accounts receivable upon on date of collection.
Allowed discount:
[tex]= \$2,600 \times 1\% \\\\= \$2,600 \times \frac{1}{100} \\\\= \$26[/tex]
Collection Cash:
[tex]= \$2,600 - \$26 \\\\ = \$2,574[/tex]
Its $2,574 money collecting is documented by Debiting Cash and Crediting Account Receivables throughout the Cash Reception Gourmet at $2,574. The price of the goods sold doesn't always relate to income.
in the month of march, chester received orders of 179 units at a price of $15.00 for their product clack, and in april receives an order for 45 units of their product clack at $15.00. chester uses the accrual method of accounting and offers 30 day credit terms. chester delivers 0 units in march, 179 units in april and 45 units in may. they received payment for 179 units in april, and payment for 45 units in may. how much revenue is recognized on the march income statement from this order
Answer:
$0
Explanation:
The computation of the revenue recognized is shown below:
= Price per unit × number of units delivered in march month
= $15 × 0 units
= $0
Since 0 units delivered in the march month and if we multiplied the price per unit with the march units i.e. 0 so the answer should be zero only
Review the transactions and determine the accounts, the account types (use assets; liabilities; owner, capital; owner, withdrawals; revenue; and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry.Received cash on account from a customer.Account #1 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditAccount #2 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditAccrued liability for utilities.Account #1 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditAccount #2 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditPurchased office supplies on accountAccount #1 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditAccount #2 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditPaid cash for rent.Account #1 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditAccount #2 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditPurchased office furniture on accountAccount #1 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditAccount #2 Account Type Increase/DecreaseIncreaseDecreaseDebit/CreditDebitCreditRecord the following transactions as journal entries.Collected $7,000 cash for servicesCollected $7,000 cash for servicesDateAccounts and ExplanationDebitCreditNov. 3Paid $7,000 cash on account.Paid $7,000 cash on account.DateAccounts and ExplanationDebitCreditNov. 4Paid $7,000 cash for rent.Paid $7,000 cash for rent.DateAccounts and ExplanationDebitCreditNov. 5Paid $5,000 for advertising in the local paperPaid $5,000 for advertising in the local paperDateAccounts and ExplanationDebitCreditNov. 5Bright, the owner, withdrew $7,000 cash.Bright, the owner, withdrew $7,000 cash.DateAccounts and ExplanationDebitCreditNov. 5
Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department.
Maintenance Cutting Assembly Packaging
Direct costs $20,000 $32,000 $72,000 $47,000
Sq. ft. of space 600 1,100 2,100 3,050
No. of employees 4 4 18 6
a. $3,520.
b. $5,000.
c. $20,000.
d. $3,874.
Answer:
a. $3,520.
Explanation:
The computation of the amount of maintenance cost allocated to the Cutting Department is given below:
= maintenance cost ÷ total floor space excluding maintenance cost
= $20,000 ÷ 6,250 × 1,100
= $3,520.
hence, the option is A.$3,520.
The 6,250 comes from
= 1,100 + 2,100 + 3,050
= 6,250
You're prepared to make monthly payments of $380, beginning at the end of this month, into an account that pays 5 percent interest compounded monthly. How many payments will you have made when your account balance reaches $24,391
Answer:
the nper is 57 months
Explanation:
The computation of the time period is given below:
Given that
PMT is $380
RATE = 5% ÷ 12 = 0.416666%
PV = $0
FV = $24,391
The formula is shown below
=NPER(RATE,PMT,FV,PV,TYPE)
After applying the above formula, the nper is 57 months
Fothergill Company makes 40,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:
Direct materials $23.40
Direct labor 22.30
Variable manufacturing overhead 1.40
Fixed manufacturing overhead 24.60
Unit product cost $71.70
An outside supplier has offered to sell the company all of these parts it needs for $59.10 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $390,000 per year. If the part were purchased from the outside supplier, all of the direct labor, direct materials and variable manufacturing overhead costs of the part would be avoided. However, $21.90 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.
Required:
a. How much of the unit product cost of $71.70 is relevant in the decision of whether to make or buy the part?
b. What is the net total dollar advantage or (disadvantage) of purchasing the part rather than making it? (remember that the facility could be used to produce a different product if we purchased the parts from the outside).
c. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 40,000 units required each year?
Answer and Explanation:
The computation is shown below:
a)
cost per unit
= direct materials + direct labor + variable manufacturing overheard + fixed manufacturing over eard
= $23.40 + $22.30 + $1.40 + ($24.60 - $21.90)
= $49.80
b)
The net advantage is
= manufacturing cost savings + addition contribution margin - cost of purchase of part
= $1,992,000 (40,000 ×$49.80) + $390,000 - $2,364,000 (40,000 × $59.10)
= $18,000
c)
total benefit is
= $1,992,000 + $390,000
= $2,382,000
Now
maximum amount per unit is
= $2,382,000 ÷ 40000
= $59.55
The chairperson can also be a minute taker in the meeting ?
A T-bill has a discount Ask quote of 4.80 with 150 days to maturity and sells for $9800. The bill has a face value of $10,000. What is its Ask yield
Answer: 4.97%
Explanation:
Yield = (Face value / Purchase price - 1) * 365 days / Days to maturity
= (10,000 / 9,800 - 1) * 365 / 150
= 0.0204081632653 * 365/150
= 4.97%
A partnership has the following account balances at the date of termination: Cash, $93,000; Noncash Assets, $725,000; Liabilities, $363,000; Bell, capital (50 percent of profits and losses), $215,000; Mann, capital (30 percent), $150,000; Scott, capital (20 percent), $90,000. The following transactions occur during liquidation: Noncash assets with a book value of $565,000 are sold for $465,000 in cash. A creditor reduces his claim against the partnership from $120,000 to $100,000, and this amount is paid in cash. The remaining noncash assets are sold for $130,000 in cash. The remaining liabilities of $243,000 are paid in full. Liquidation expenses of $21,000 are paid in cash. Cash remaining after the above transactions have occurred is distributed to the partners. Prepare a statement of partnership liquidation to determine how much cash each partner receives from the liquidation of the partnership. (Amounts to be deducted should be entered with a minus sign.)
Answer:
Bell, Mann, and Scott Partnership
Statement of Partnership Liquidation
Bell Mann Scott Total
Capital account balances $215,000 $150,000 $90,000 $455,000
Share of net loss (55,000) (33,000) (22,000) (110,000)
Capital account balances $160,000 $117,000 $68,000 345,000
Cash payment -160,000 -117,000 -68,000 -345,000
Ending balance $0 $0 $0 $0
Explanation:
a) Data and Calculations:
Assets:
Cash, $93,000
Non-cash Assets, $725,000
Total assets $818,000
Liabilities, $363,000
Bell, capital $215,000
Mann, capital $150,000
Scott, capital $90,000
Total liabilities and owners capital $818,000
Profit and Loss Sharing Ratios:
Bell = 50%
Mann = 30%
Scott = 20%
Loss arising from the sale of non-cash assets and liabilities:
Book Value Cash Collected/Paid Loss/Gain
$565,000 $465,000 -$100,000
$160,000 $130,000 -$30,000
Gain from adjustment of liabilities:
$120,000 $100,000 $20,000
Net Loss to be shared among partners $110,000
Cash account
Balance $93,000
Non-assets 465,000
Non-assets 130,000 595,000
Liabilities (100,000)
Liabilities (243,000) (344,000)
Distributable balance $345,000
Gibson Electronics identifies licensees in various countries who produce and sell the company's products in their countries in return for a royalty fee on every unit sold. Gibson Electronics’ approach is risky because of the problems associated with:_______
a. increased production costs.
b. doing business in a different culture where the rules of the game may be very different.
c. an increase in transportation costs, especially for those products that have a low value-to-weight ratio.
d. the possibility of an increase in trade barriers such as import tariffs or quotas.
e. sharing valuable technological know-how with a potential competitor.
Answer:
E) sharing valuable technological know-how with a potential competitor.
Explanation:
From the question we are informed about Gibson Electronics who identifies licensees in various countries who produce and sell the company's products in their countries in return for a royalty fee on every unit sold. Gibson Electronics’ approach is risky because of the problems associated with sharing valuable technological know-how with a potential competitor. Technological know-how in organization can be regarded as sets of knowledge as well as skills which is developed by that participants and is used to guide the acquisition as well as creation, and operation of computer-based systems which gives enablements or brings about facilitation of the performance of business processes, sharing this with competitors in business could be dangerous potential competitors can embrace it to move their business forward which will affect the owner of the Technological know how Businesses in the market.
The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow
Answer:
$1,685,335
Explanation:
Hi, your question is incomplete, I have searched for the full question online and I have uploaded it as an image below.
Uneven cash flows are cash flows that are received in uneven amounts and possibly uneven periods as well.
We can simply use the CFj function of a financial calculator to determine the present value of uneven cash flows as follows :
$0 CF 0
$250,000 CF 1
$20,000 CF 2
$330,000 CF 3
$450,000 CF 4
$550,000 CF 5
$375, 000 CF 6
i/yr = 4 %
Shift NPV gives $1,685,335
Therefore,
The present value of this uneven cash flow is $1,685,335
Gross domestic product understates the total production of final goods and services because of the omission of inflation. intermediate goods. exports. the underground economy.
Answer:
the underground economy
Explanation:
Gross domestic product is defined as the monetary value of all goods and services that a country produces within a given period.
It is estimated by using income, expenditure, and production in markets.
However GDP does not consider the underground economy.
The underground economy is made up of transactions that are considered illegal or that do not meet up to the reporting requirements of the government.
In effect these are not reported in GDP so GDP is understated.
A company reports the following: Sales $6,750,000 Average total assets (excluding long-term investments) 2,500,000 Determine the asset turnover ratio. If required, round your answer to one decimal place. fill in the blank 1
Answer:
2.7
Explanation:
Calculation to Determine the asset turnover ratio
Using this formula
Asset Turnover = Sales/Average Total Assets
Let plug in the morning
Asset Turnover =$6,750,000/2,500,000
Asset Turnover =2.7
Therefore the asset turnover ratio is 2.7
According to Gordon Tullock monopoly:_________
a. profits or rents are subject to rent seeking the welfare cost triangle
b. is subject to rent seeking X-inefficiency
c. is something that differentiates government monopolies from private monopolies
d. the theory of monopoly is superior to the theory of perfect competition
Answer:
a. profits or rents are subject to rent seeking the welfare cost triangle
Explanation:
Monopolies are businesses that have sole control of the supply and pricing of a product. Dead weight loss used to be regarded as consumer surplus that does not affect the amount of product that a monopolist can provide.
Gordon Tullock however argued that loss also occurs when businesses are seeking to be a monopoly. There is an associated cost on obtaining and maintaining a monopoly called rent seeking.
Also an additional cost as result of dead weight loss due to payment of tarrif. This can result from net welfare benefit or loss as a result of government policy change (this is referred to as welfare triangle).
Capital budgeting is the process of analyzing: Group of answer choices Cash outflows only. Investments with certain outcomes only. Short-term investments. Operating revenues. Long-term investments.
Answer:
Long-term investments.
Explanation:
Capital budgeting can be regarded as process that is been utilized by business in determining the type proposed fixed asset purchases that need to be declined or should be accepted. This process helps in creating quantitative view as regards the proposed fixed asset investment, so that rational basis to make make a judgment can be surfaced. It should be noted that Capital budgeting is the process of analyzing Long-term investments.
A company discarded a computer system originally purchased for $8,500. The accumulated depreciation was $6,700. The company should recognize a (an):
Answer:
1800
Explanation:
A company threw away a computer that originally costs $8,500
They accumulated depreciation of $6,700
Hence the company will loss money, they would experience a loss of
8500-6700
= 1800
Hence the company will be at a loss of 1800
Assume that you invest 5 percent of your salary and receive the full 5 percent match from East Coast Yachts. What EAR do you earn from the match
Answer:
The EAR you earn from the match is 100%.
Explanation:
Since a full 5 percent match will be received if 5 percent of your salary is invested, this implies that 100% will be earned by you from the match up to 5%.
For example, if 5 percent of your salary that you put in is $200, the East Coast Yachts will match the $200. This indicates that effective annual return (EAR) earned by you from the match is 100%.
Therefore, the EAR you earn from the match is 100%.
The stock in Pal-Maine Foods has a beta of .85. The expected return on the market is 11.50 percent and the risk-free rate is 2.85 percent. What is the required return on the company's stock?
Answer:
the required rate of return is 10.20%
Explanation:
The computation of the required rate of return is shown below;
We know that
= risk free rate of return + beta × (market rate of return - risk free rate of return)
= 2.85% + 0.85 × (11.50% - 2.85%)
= 2.85% + 7.3525%
= 10.20%
hence, the required rate of return is 10.20%