Instructions: Please prepare a Balance Sheet on your scratch paper based on the following Adjusted Trial Balance and Additional Information below to answer this question and the next three (3) questions.
(Hint: you may also want to prepare a new Income Statement and Statement of Stockholders' Equity before preparing the Balance Sheet to make sure you have the necessary information for the Balance Sheet account balances.)
You will need to know the amounts for total current assets, total long-term assets, total current liabilities, total long-term liabilities, and total stockholders' equity.
Adjusted Trial
Balance As of 12/31/20xx
Accounts Debit Credit
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Building 100,000
Accumulated Depreciation $6,000
Accounts Payable 1800
Deferred Revenue 1,300
Notes Payable (due in 24 months 80,486
Common Stock 2,100
Retained Earnings 46,400
Dividends 4,000
Service Revenue 12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000
Totals $150,486 $150,486
Additional Information:
Beginning Balance of Common Stock on 1/1/20xx $2.100
Beginning Balance of Retained Earnings on 1/1/20xx $46,400
No new stock was issued during the accounting period. .
Hint: Please remember the formula for retained earnings when preparing this statement
Question: What is the amount shown for Total Current Assets shown on the Classified Balance Sheet you prepared on your scratch paper?
Answer:
a) Balance Sheet as of December 31, 20xx:
Assets:
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Total current assets $35,586
Building 100,000
Acc. Depreciation (6,000) $94,000
Total assets $129,586
Current Liabilities:
Accounts Payable $1,800
Deferred Revenue 1,300
Total current liabilities $3,100
Notes Payable (due in
24 months 80,486
Total liabilities $83,586
Common Stock 2,100
Retained Earnings 43,900 46,000
Total liabilities and equity $129,586
b) Total current assets = $35,586
Explanation:
a) Data and Calculations:
Adjusted Trial
Balance as of 12/31/20xx
Accounts Debit Credit
Cash $25,486
Prepaid Rent 5,700
Supplies 4,400
Building 100,000
Accumulated Depreciation $6,000
Accounts Payable 1,800
Deferred Revenue 1,300
Notes Payable (due in 24 months 80,486
Common Stock 2,100
Retained Earnings 46,400
Dividends 4,000
Service Revenue 12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000
Totals $150,486 $150,486
Additional data:
Beginning Balance of Common Stock on 1/1/20xx $2,100
Beginning Balance of Retained Earnings on 1/1/20xx $46,400
Income Statement for the year ended December 31, 20xx
Service Revenue $12,400
Rent Expense 900
Supplies Expense 3,000
Utility Expense 1,000
Depreciation Expense 6,000 10,900
Net Income 1,500
Statement of Stockholders' Equity:
Beginning Common Stock on 1/1/20xx $2,100
Beginning Retained Earnings on 1/1/20xx 46,400
Net Income 1,500
Dividends (4,000)
Ending Equity balance on 12/31/20xx $46,000
Retained Earnings on 12/31/20xx:
Beginning Retained Earnings on 1/1/20xx 46,400
Net Income 1,500
Dividends (4,000)
Retained Earnings on 12/31/20xx $43,900
Presented below is information for Sunland Co. for the month of January 2022. Cost of goods sold $201,500 Rent expense $32,100 Freight-out 7,900 Sales discounts 9,000 Insurance expense 13,600 Sales returns and allowances 18,700 Salaries and wages expense 63,700 Sales revenue 393,500 Income tax expense 4,700 Other comprehensive income (net of $400 tax) 2,000 (a) Prepare an income statement using the multiple-step format.
Answer:
Sunland Co.
Income statement for the month ended January 2022.
Sales revenue 393,500
Sales returns and allowances (18,700)
Net Sales 374,800
Less Cost of goods sold (201,500)
Gross Profit 173,300
Less Operating Expenses :
Freight-out 7,900
Sales discounts 9,000
Insurance expense 13,600
Salaries and wages expense 63,700 (94,200)
Operating Profit 79,100
Less Non Operating Expenses
Income tax expense (4,700)
Net Profit for the year 74,400
Other comprehensive income (net of $400 tax) 2,000
Total Profit and Other Comprehensive Income 76,400
Explanation:
Multi- step Income Statement shows Income from Primary activities and Secondary activities separately as above.
The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company’s financial condition and performance.
Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet.
Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars)
Year 2 Year 1 Year 2 Year 1
Assets Liabilities and equity
Current assets: Current liabilities:
Cash and equivalents $4,612 Accounts payable $0 $0
Accounts receivable 2,109 1,688 Accruals 293 0
Inventories 6,187 4,950 Notes payable 1,660 1,562
Total current assets $14,062 $11,250 Total current liabilities $1,562
Net fixed assets: Long-term debt 5,859 4,688
Net plant and equipment $13,750 Total debt $7,812 $6,250
Common equity:
Common stock 15,235 12,188
Retained earnings 6,562
Total common equity $23,438 $18,750
Total assets $31,250 $25,000
Total liabilities and equity $31,250 $25,000
Given the information in the preceding balance sheet—and assuming that Cold Goose Metal Works Inc. has 50 million shares of common stock outstanding—read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.
Statement #1: Cold Goose’s pool of relatively liquid assets, which are available to support the company’s current and future sales, decreased from Year 1 to Year 2.
This statement is , because:
Cold Goose’s total current liabilities balance decreased by $2,812 million between Year 1 and Year 2
Cold Goose’s total current asset balance actually increased from $11,250 million to $14,062 million between Year 1 and Year 2
Cold Goose’s total current liabilities balance increased from $1,688 million to $2,109 million between Year 1 and Year 2
Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable.
This statement is , because:
The cash and equivalents account increased between Years 1 and 2
Cold Goose’s retained earnings account increased between the end of Years 1 and 2
Cold Goose’s total assets increased between Years 1 and 2
Answer:
A. Total assets $31,250 $25,000
Total abilities and equity $31,250 $25,000
B. Statement 1 is FALSE
Statement 2 is TRUE
Explanation:
A . Using the information given to complete the balance sheet
Cold Goose Metal Works Inc Balance Sheet For Year Ending December 31 (Millions of Dollars)
Year 1 Year 2
ASSETS
Current assets:
Cash and equivalents
$5,766 $4,612
(14,062 – 6,187-2,109 = $5766)
Accounts receivable
2,109 1,688
Inventories
6,187 4,950
Total current assets
$14,062 $11,250
Net fixed assets:
Net plant and equipment
$17,188 $13750
( 31,250-14,062 = $17,188)
Total assets $31,250 $25,000
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$0 $0
Accruals
293 0
Notes payable
1,660 1,562
Total current abilities
$1,953 $1,562
(0+293+1,660 = $1,953)
Long-term debt
5,859 4,688
Total debt
$7,812 $6,250
Common equity
Common stock
15,235 12,188
Retained earnings
$8,203 6,562
(23,438-15,235 = $8,203)
Total abilities and equity $31,250 $25,000
Net Plant and Equipment= 31250-14062
Net Plant and Equipment = $17188
Cash and Equivalents = 14062 – 6187-2109
Cash and Equivalents= $5766
Total Current liabilities = 0+293+1660
Total Current liabilities = $1953
Retained earnings = 23438-15235
Retained earnings= $8203
B. To identify the selection that best interprets the information conveyed by the balance sheet.
Based on the information given STATEMENT 1 is FALSE reason been that Cold Goose’s total current asset balance increased from the amount of $11,250 million to the amount of $14,062 million between Year 1 and Year 2.
Based on the information given STATEMENT 2 is TRUE reason been that their was increased in retained earnings account between the end of Years 1 and year 2.
Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase, demand is expected to fall by 7,000 units. Current Projected Demand 78,000 units 71,000 units Selling price $9.00 $9.75 Incremental cost per unit $6.80 $6.80 Would you recommend the 75-cent price increase
Answer:
Yes, reason been that operating profits increase
Explanation:
Calculation to determine whether
Incremental analysis you would recommend the 75-cent price
Current Projected
Incremental revenue $702,000 $692,250
(78,000 units*$9.00=$702,000)
(71,000*$9.75=$692,250)
Incremental cost -$537,200 -$482,800
(78,000 units*$6.80=$537,200)
(71,000*$6.80=$482,800)
Incremental Profit (loss) $164,800 $209,450
($702,000-537,200)
($692,250-$482,800)
Profit increase by($209,450 -$164,800)
Profit increase by= $44,650
Based on the above calculation I would recommend the 75-cent price increase reason been that operating profits increase.
define moral hazard.
Answer:
Moral hazard is type of situation in where on person or party gets involved in a very risky event when knowing that it is protected against and the person or party, which will incur the cost. This can arise when both people or parties have a incomplete information about on another or each other.
Carlin and Marley, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $270,000) has been allocated to services on this basis of billable hours to clients. A recent analysis found that 55% of the firm's billable hours to clients resulted from tax planning services, while 45% resulted from consulting services. The firm, contemplating a change to activity-based costing, has identified three components of administrative cost, as follows: Staff Support$200,000 In-house computing charges 50,000 Miscellaneous office costs 20,000 Total$270,000 A recent analysis of staff support found a strong correlation with the number of clients served. In contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting clients served totaled 35% of the total client base, consumed 30% of the firm's computer hours, and accounted for 20% of the total client transactions. If Carlin and Marley switched from its current accounting method to an activity-based costing system, the amount of administrative cost chargeable to consulting services would:
Answer:
Carlin and Marley
Using activity-based costing system, the amount of administrative cost chargeable to consulting services would be:
= $89,000
instead of $121,500 using the traditional method.
Explanation:
a) Data and Calculations:
Services provided by the accounting firm = consulting and tax planning
Total administrative cost = $270,000
Traditional allocation basis = billable hours to clients
Services Tax Planning Consulting Total
Traditional cost pool basis:
Billable hours to clients 55% 45% 100%
Activity cost pool bases:
Client base 65% 35% 100%
Computer hours 70% 30% 100%
Total client transactions 80% 20% 100%
Activity Pools Overhead Costs Activity Basis
Staff Support $200,000 Number of clients served
In-house computing charges 50,000 Number of computer hours
Miscellaneous office costs 20,000 Number of client transactions
Total administrative cost = $270,000
Overhead Allocation for each Activity Cost Pool:
Services Total Tax Planning Consulting
Staff Support $200,000 $130,000 $70,000
In-house computing charges 50,000 35,000 15,000
Miscellaneous office costs 20,000 16,000 4,000
Total administrative cost = $270,000 $181,000 $89,000
Traditional costing method:
Billable hours to clients 100% 55% 45%
Amount based on billable hours $270,000 $148,500 $121,500
there might be times your boss allows you to work from home.having the permission to work from home,you just took some office supplies anyway you are using it for work from home
Uhm is there a question or are you just stating this lol
Organizations and agencies are a result of _______ in environmental protection issues.
a.
contingency plans
b.
hunting regulations
c.
government involvement
d.
all of the above
Please select the best answer from the choices provided
A
B
C
D
Answer:the answer is C I think
Explanation:
The organizations and agencies are a result of government involvement in environmental protection issues. Thus option (C) is correct.
What is an environment?An environment is the natural or human-made surroundings in which something exists or operates. It can refer to the physical, biological, social, or cultural context that influences and shapes the behavior, development, and well-being of living organisms or systems.
The environment can refer to the natural world, including the air, water, soil, and climate that sustain life on Earth. It can also refer to the built environment, such as cities, buildings, and infrastructure, that humans have constructed and inhabit.
The government involvement in environmental protection issues led to result in formation of organizations and agencies. Therefore, option (C) is correct.
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A stadium is considering an offer from Mass Insurance to change the name to Mass Stadium. The company is offering to pay $1,000,000 per year. If the stadium already receives $250,000 from music promotions and accepts this offer, how much will it receive in sponsorship rights each year in total?
Answer:
b) 1,250,000
Explanation:
1,000,000+ 250,000 = 1,250,000
According to the company data, it will receive in sponsorship rights each year in total is $ 1,250,000.
What do you mean by the sponsorship?The act of monetarily or by the giving of goods or services supporting an occasion, activity, person, or organization is known as sponsoring something (or someone). The sponsor is the person or entity that offers the support; it functions similarly to a benefactor.
An organization sponsors an event when it offers financial support in exchange for marketing benefits. Sponsorships may involve a financial payment in exchange for property or a barter transaction including goods or services.
A brand or affiliation with a firm is promoted in exchange for corporate financial assistance from an organization, person, or activity, which is known as sponsorship. Of sure, sponsorship can raise your brand's value.
Here,
Company pay = $ 1,000,000
Advance amount = $ 250,000
Total sponsorship = $ 1,000,000 + $ 250,000 = $ 1,250,000
Therefore, according to the company data, it will receive in sponsorship rights each year in total is $ 1,250,000.
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What does O + A + C = K stand for and mean in the legal "Formula" for contracts?
please helpppp
Answer:
O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.
Explanation:
g Kally goes to the grocery store each week looking to purchase items that will give her as much utility as possible, given her $100 budget. Last week apples were priced at $4.50 each, and Kally purchased 3 apples. This week apples are on sale for $2.50 each, while all other prices have remained the same, and Kally chooses to purchase 7 apples. Given this information, plot Kally's demand curve for apples.
Answer:
Please check the attached image for the graph
Explanation:
The demand curve is a curve that shows the various quantities of a good that is purchased at different prices.
The demand curve is downward sloping due to the inverse relationship between price and quantity demanded. The higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This is known as the law of demand.
It can be seen that the quantity demanded of apples increased from 3 to 7 when price reduced to $2.50
On the demand curve, price is on the vertical axis, while quantity demanded is on the horizontal axis
which of the following is an example of greenwashing
Answer:
An example of greenwashing is the American multinational oil and gas corporation ExxonMobil indicating they were reducing greenhouse gas emissions while they were actually increasing
Explanation:
The example of greenwashing is a food company changes its packaging to look more natural in order to sell more.
In greenwashing, company do creates a small product that is eco-friendly to draw customers into their store.
Example: A doormat company sells one product made out of recycled material. The recycled material is overpriced but still makes them look good.
Unilever is also one type of business going green with an eco friendly strategy.
Conclusively, Greenwashing is simply the use of deceptive marketing techniques to persuade consumers that an organization's products and vision are environmentally-friendly.
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The full question is below
Which of the following is an example of greenwashing
A. A large office starts a recycling campaign to cut down on waste.
B. An event company uses recycled paper products instead of plastic
products.
C. A hair product company cuts back on certain chemicals.
D. A food company changes its packaging to look more natural in order to sell more.
At Ruth Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $150,000. (2) A strike by the employees of a supplier resulted in a loss of $125,000. (3) The inventory at December 31, 2018 was overstated by $200,000. The effect of these events and transactions on 2020 income from continuing operations net of tax would be A. ($280,000). B. ($380,000). C. ($220,000). D. ($100,000).
Answer:
D. ($100,000)
Explanation:
Calculation for what The effect of these events and transactions on 2020 income from continuing operations net of tax would be
Continuing operations net of tax=(20%*$125,000)-$125,000
Continuing operations net of tax=$25,000-$125,000
Continuing operations net of tax=($100,000)
Therefore The effect of these events and transactions on 2020 income from continuing operations net of tax would be ($100,000)
2) Ralph Wood, the Vice President for Marketing, is planning to fly in his eight area sales managers for a yearly planning session. Sarah Sayre, the Vice President for Finance, complains that the company is in a weak, cash position and looks to Bill for a technological alternative to the planning session planned by Ralph. What are other companies doing about this
Answer:
Web conferencing
Explanation:
The technological alternative that can be suggested by Bill considering the company's weak cash position would be the use of Web conferencing session to host the yearly planning session, because that way the cost of accommodation, flight and other logistics can be avoided and the aim of the yearly planning session will still be achieved without having the company's finance suffering a lot.
Most companies are now adopting Web conferencing as a new and innovative means of holding meetings and very important sessions across their various offices simultaneously.
what happens if a business doesn't meet target profit
Answer:
If revenues are less than total cost, a company does not reach the break even point, which results in a less. A company that fails to make enough sales to meet the break even point accumulates debt over time, which can eventually cause a company to go out of business .
Explanation:
I hope it is the right answer you were looking for.
how important is the value of a product for a customer
Answer:
very important
Explanation:
our community has a total of approximately 100,000 households. What percentage of households would be potential customers for The Shoe Hut? What percentage of households would be potential customers for Star's Coffee and Teas?
Answer:
Your community has a total of approximately 100,000 households. ... What percentage of households would be potential customers for Star's Coffee and Teas? approximately ... The Shoe Hut Star's Coffee and Teas has a lower barrier to entry
Explanation:
On December 31, 2020, Oriole Company sold for $153000 an old machine having an original cost of $266000 and a book value of $113000. The terms of the sale were as follows: $40000 down payment $56500 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 7% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 7% for 2 years is 1.80802.)
Answer:
$102,153.13
Explanation:
Amount payable on December 31 each of the next two years = $56,500
The PV of ordinary annuity of ($1,7%,2 years) is 1.80802
The amount of the notes receivable net of the unamortized discount = Amount Payable * PV($1, 7%, 2)
= $56,500 * 1.80802
= $102,153.13
So, the amount of the notes receivable net of the unamortized discount on December 31, 2020 will be $102,153.13.
Identify the possessive pronoun in the following sentence: "I love my new computer!"
A I
B love
C
my
Answer:
A
Explanation:
Define scale of preference and difine economics
Answer:
scale of preference is the only tool in economics that can determine the real demand for certain goods.
You plan to purchase a house for $180,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 10 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? b. Your bank offers you the following two options for payments. Which option should you choose?
Answer:
choose the first one
Explanation:
get the debt over faster
Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two activities: testing components and reordering components. After the two components are inserted, testing is done to ensure that the two components in the phones are working properly. Reordering occurs because one or both of the components have failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows:
I. Activity Costs Caused by Suppliers (testing failures and reordering as a result)
Activity Costs
Testing components $1,200,000
Reordering components 300,000
II. Supplier Data
Alpha Electronics La Paz Company
125X 30Y 125X 30Y
Unit purchase price $10 $26 $12 $28
Units purchased 120,000 84,400 15,000 15,000
Failed tests 1,500 780 10 10
Number of reorders 60 40 0 0
Required:
Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent.
Alpha Electronics La Paz Company
125X 30Y 125X 30Y
Unit cost: $ $ $ $
Answer:
Clearsound
The cost of each supplier, using ABC:
Alpha Electronics La Paz Companyl
125X 30Y 125X 30Y
Unit cost $18.02 $32.24 $12.35 $28.35
Explanation:
a) Data and Calculations:
Activity Costs
Testing components $1,200,000
Reordering components $300,000
Total costs = $1,500,000
II. Supplier Data
Alpha Electronics La Paz Company Total
125X 30Y 125X 30Y
Unit purchase price $10 $26 $12 $28
Units purchased 120,000 84,400 15,000 15,000
Total costs of units $1,200,000 $2,194,400 $180,000 $420,000
Failed tests 1,500 780 10 10 2,300
Number of reorders 60 40 0 0 100
Activity Rates:
Failed tests $1,200,000/2,300 = $521.74
Reordering $300,000/100 = $3,000
Alpha Electronics La Paz Companyl
125X 30Y 125X 30Y
Unit purchase price $10 $26 $12 $28
Units purchased 120,000 84,400 15,000 15,000
Total costs of units $1,200,000 $2,194,400 $180,000 $420,000
Testing components 782,610 406,957 5,217 5,217
Reordering 180,000 120,000
Total costs $2,162,610 $2,721,357 $185,217 $425,217
Unit cost $18.02 $32.24 $12.35 $28.35
The comparative statements of Carla Vista Co. are presented here.
CARLA VISTA CO.
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,897,540 $1,757,500
Cost of goods sold 1,065,540 1,013,000
Gross profit 832,000 744,500
Selling and administrative expenses 507,000 486,000
Income from operations 325,000 258,500
Other expenses and losses
Interest expense 24,000 22,000
Income before income taxes 301,000 236,500
Income tax expense 94,000 75,000
Net income $ 207,000 $ 161,500
CARLA VISTA CO.
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 124,800 109,800
Inventory 128,000 117,500
Total current assets 386,900 341,500
Plant assets (net) 659,000 530,300
Total assets $1,045,900 $871,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 167,000 $152,400
Income taxes payable 45,500 44,000
Total current liabilities 212,500 196,400
Bonds payable 230,000 210,000
Total liabilities 442,500 406,400
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and stockholders’ equity $1,045,900 $871,800
All sales were on account. Net cash provided by operating activities for 2017 was $251,000. Capital expenditures were $135,000, and cash dividends were $59,000.
Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a) Earnings per share $
(b) Return on common stockholders’ equity
(c) Return on assets
(d) Current ratio
(e) Accounts receivable turnover
(f) Average collection period
(g) Inventory turnover
(h) Days in inventory
(i) Times interest earned
(j) Asset turnover
(k) Debt to assets ratio
(l) Free cash flow
Answer:
Carla Vista Co.
(a) Earnings per share = $3.57
(b) Return on common stockholders’ equity = 34.31%
(c) Return on assets = 19.79%
(d) Current ratio = 1.82
(e) Accounts receivable turnover = Net Sales/Average Receivable = 16.18 times
(f) Average collection period = 365 Days /Average Receivable Turnover ratio = 22.56 days
(g) Inventory turnover = Cost of goods sold/Average Inventory = 8.68 times
(h) Days in inventory = 42.05 days
(i) Times interest earned = 3.46 times
(j) Asset turnover = 1.81
(k) Debt to assets ratio = Total Debt/Total Assets = 42.31%
(l) Free cash flow = Cash from Operations - Capital Expenditures = $116,000
Explanation:
a) Data and Calculations:
CARLA VISTA CO.
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,897,540 $1,757,500
Cost of goods sold 1,065,540 1,013,000
Gross profit 832,000 744,500
Selling and administrative expenses 507,000 486,000
Income from operations 325,000 258,500
Other expenses and losses:
Interest expense 24,000 22,000
Income before income taxes 301,000 236,500
Income tax expense 94,000 75,000
Net income $ 207,000 $ 161,500
CARLA VISTA CO.
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 124,800 109,800
Inventory 128,000 117,500
Total current assets 386,900 341,500
Plant assets (net) 659,000 530,300
Total assets $1,045,900 $871,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 167,000 $152,400
Income taxes payable 45,500 44,000
Total current liabilities 212,500 196,400
Bonds payable 230,000 210,000
Total liabilities 442,500 406,400
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and
stockholders’ equity $1,045,900 $871,800
Net cash provided by operating activities for 2017 = $251,000
Capital expenditures = $135,000,
2017 Ratios:
(a) Earnings per share = $207,000 ($ /58,000 shares) = $3.57
(b) Return on common stockholders’ equity = $207,000/$603,400 * 100 = 34.31%
(c) Return on assets = $207,000/$1,045,900 * 100 = 19.79%
(d) Current ratio = $386,900/212,500 = 1.82
Average Receivable = ($124,800 + 109,800)/2 = $117,300
(e) Accounts receivable turnover = Net Sales/Average Receivable
= $1,897,540/$117,300 = 16.18 times
(f) Average collection period = 365 Days /Average Receivable Turnover ratio. = 365/16.18 = 22.56 days
Average Inventory = ($128,000 + 117,500)/2 = $122,750
(g) Inventory turnover = Cost of goods sold/Average Inventory = $1,065,540/122,750 = 8.68 times
(h) Days in inventory = 365/8.68 = 42.05 days
(i) Times interest earned = Earnings before interest & taxes / Tax expense = $325,000/$94,000 = 3.46 times
(j) Asset turnover = Net Sales/Assets = $1,897,540/$1,045,900 = 1.81
(k) Debt to assets ratio = Total Debt/Total Assets = $442,500/$1,045,900 * 100 = 42.31%
(l) Free cash flow = Cash from Operations - Capital Expenditures = $251,000 - $135,000 = $116,000
How are wages for a particular job determined?
by the federal Wage and Hour Department
by the amount of inflation in the economy
by the equilibrium between supply and demand for workers
by advertisements in the newspaper or online
Answer:
by the equilibrium between supply and demand for workers
Explanation:
Wages are the amount to pay workers for a particular job when employed. Therefore, determining the wages for a particular job is mostly dependent "on the equilibrium between supply and demand for workers, " and sometimes location.
This is because the higher the number of workers available, the lesser the employers would be willing to increase the wage level of employees given the fact that they can easily find another employee. However, where there is a lesser number of employees for a particular job, the employers would be willing to increase the employees' wages to entice them.
According to the labor market equilibrium, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
The term "labor market," sometimes referred to as the "job market," describes the supply and demand for labor, with employers meeting the demand and employees meeting the supply.
The supply and demand of labor, which are met by employees and employers respectively, are referred to as the labor market.Both macroeconomic and microeconomic perspectives on the labor market are important because they provide useful information on employment and the state of the economy as a whole.Two crucial macroeconomic indicators are labor productivity rates and unemployment rates.Therefore, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
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Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $104,000 under each of the following independent assumptions. No agreement concerning division of net income. Divided in the ratio of original capital investment. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.
Hawes Albright
(a) $ $
(b) $ $
(c) $ $
(d) $ $
(e) $ $
Answer:
No agreement concerning division of net income.
Hawes = $52,000
Albright = $52,000
Divided in the ratio of original capital investment.
Hawes = (210/280) x $104,000 = $78,000
Albright = (70/280) x $104,000 = $26,000
Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.
Hawes = ($210,000 x 5%) + $36,000 = $46,500
Albright = ($70,000 x 5%) + $54,000 = $57,500
Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally.
Hawes = $36,000 + $11,500 = $47,500
Albright = $45,000 + $11,500 = $56,500
Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.
Hawes = ($210,000 x 5%) + $36,000 + $4,500 = $51,000
Albright = ($70,000 x 5%) + $45,000 + $4,500 = $53,000
Suppose the town of Boone has a total population of 70,000 people. Of those, 65,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.
Instructions: In part a, round your answer to 1 decimal place. In part b, enter your answer as a whole number.
a. What is Boone’s unemployment rate?
percent
b. Suppose there are 1,000 people who are unemployed as a result of frictional unemployment and 2,000 people who are unemployed as a result of cyclical unemployment. How many people are unemployed as a result of structural unemployment?
Answer:
A. 5.8%
B. 1,000
Explanation:
Calculation for Boone’s unemployment rate
Unemployment rate=[(70,000-1,000)-65,000]/(70,000-1,000)*100
Unemployment rate=(69,000-65,000)/69,000*100
Unemployment rate=4,000/69,000*100
Unemployment rate=5.8%
Therefore Boone’s unemployment rate will be 5.8%
B. Calculation for How many people are unemployed as a result of structural unemployment
Unemployed people=[(70,000-1,000)-65,000]-1,000-2,000
Unemployed people= 4,000 - 1,000 - 2,000
Unemployed people=1,000
Therefore the numbers of people that are are unemployed as a result of structural unemployment will be 1,000
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 01 What is the budgeted variable manufacturing overhead for the year
Answer:
Total estimated overhead costs for the period= $400,000
Explanation:
Giving the following information:
Total machine-hours= 35,000 + 20,000 + 15,000 + 30,000
Total machine-hours= 100,000
Predetermined variable overhead rate= $4 per machine hour
To calculate the estimated variable overhead for the period, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
4 = total estimated overhead costs for the period / 100,000
total estimated overhead costs for the period= 100,000*4
total estimated overhead costs for the period= $400,000
After changes to the copyright law in 1978, for how long is intellectual property protected?
A.
the lifetime of the artist plus 70 years
B.
100 years
C.
for the lifetime of the artist
D.
in perpetuity
On Dec 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwill of $225,000. As part of its annual review of good will impairment, the entity determined that the fair value of the reporting unit was $3,310,000. The entity assigned $3,170,000 of the reporting units fair value to its assets and liabilities other than goodwill. What is the goodwill impairment loss to be reported on Dec 31 under current US GAAP
Answer:
$85,000
Explanation:
Calculation for the goodwill impairment loss to be reported on Dec 31 under current US GAAP
First step is to calculate the Goodwill implied fair value
Goodwill implied fair value=($3,310,000-$3,170,000)
Goodwill implied fair value=$140,000
Now let calculate the Impairment loss using this formula
Impairment loss = Goodwill implied fair value - Goodwill book value
Let plug in the formula
Impairment loss= $140,000 - $225,000
Impairment loss = $85,000
Therefore the goodwill impairment loss to be reported on Dec 31 under current US GAAP is $85,000
Many employment contracts have mandatory arbitration clauses.
False
True