Answer:
cash account reconciliation:
cash account balance $14,811
- bank fees ($75)
+ error in recording check No. 919 $9
reconciled bank account $14,745
bank account reconciliation:
bank account balance $14,472
- outstanding checks ($2,261)
+ deposits in transit $2,534
reconciled bank account $14,745
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
May 1
11
23
26
29
Totals
Compute gross profit using the FIFO inventory costing method.
Gross profit is $
using the FIFO inventory costing method.
Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
May 1
11
23
26
29
Totals
Compute gross profit using the LIFO inventory costing method.
Gross profit is $
using the LIFO inventory costing method.
Answer:
The question is incomplete because the numbers are missing, so I looked for a similar question that can help you understand how this works.
June 1 Beginning inventory 17 units at $15 each June 12 Purchase 5 units at $19 each June 20 Sale 14 units at $37 each = $518June 24 Purchase 11 units at $23 each June 29 Sale 13 units at $37 each = $481Cost of goods sold under FIFO (first in, first out):
June 20 sale = 14 units x $15 = $210
Inventory on hand:
June 1 Beginning inventory 3 units at $15 each June 12 Purchase 5 units at $19 eachJune 29 sale = (3 units x $15) + (5 units x $19) + (5 units x $23) = $255
Inventory on hand:
June 24 Purchase 6 units at $23 eachTotal COGS = $465
Ending inventory = $138
Gross profit = ($518 + $481) - $465 = $534
Cost of goods sold under LIFO (last in, first out):
June 20 sale = (5 units x $19) + (9 units x $15) = $230
Inventory on hand:
June 1 Beginning inventory 8 units at $15 eachJune 29 sale = (11 units x $23) + (2 units x $15) = $283
Inventory on hand:
June 1 Beginning inventory 6 units at $15 eachTotal COGS = $513
Ending inventory = $90
Gross profit = ($518 + $481) - $513 = $486
The laws passed by Congress and by state legislatures are called:
Answer:
Rules
Explanation:
I think I'm right
Answer:
Rules
Explanation:
Yes I think this is right
Required information [The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 310,000 units of a product and transferred them to the next department. Of these transferred units, 62,000 were in process in the production department at the beginning of April and 248,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 84,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted-average method.
Answer:
Computation of Equivalent units
units Materials Conversion
Started & completed 248,000 248,000 248,000
Ending inventory 84,000 75,600 33,600
Equivalent units 323,600 281,600
Explanation:
a) Data and Calculations:
Units transferred out = 310,000
Beginning inventory = 62,000 (70% materials and 30% conversion)
Started and completed = 248,000
Ending inventory = 84,000 (90% materials and 40% conversion)
b) Equivalent units are physical units expressed as finished units by multiplying the physical units with the degree of completion in terms of materials and conversion (labor and overheads).
supposes there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen?
Answer:Suppose there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen? ... Garbage bag supply will decrease. Garbage bag prices will increase.
Explanation:workers at this wage; therefore it would simply create unemployment. b. To help ... There needs to be differences in opportunity costs of producing goods across countries for there ... Suppose we have the following market supply and demand schedules ... Economic profits are zero and firms neither enter nor exit the industry.
Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LO3-4] The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 499,968 (b) 416,640 Bal. 83,328 Work in Process Bal. 5,360 (c) 778,000 319,500 93,500 (b) 416,640 Bal. 57,000 Finished Goods Bal. 33,000 (d) 674,000 (c) 778,000 Bal. 137,000 Cost of Goods Sold (d) 674,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
Work in Process, ending $ 27,360
Finished Goods, ending 65,760
Cost of Goods Sold 323,520
Overhead applied $ 416,640
For example, of the $57,000 ending balance in work in process, $27,360 was overhead that had been applied during the year. Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer:
1. a would be the Actual Manufacturing cost for the year
b would be the Manufacturing Overhead applied to the Work in Process
c is the Cost of Goods Manufactured in the year
d is the Cost of Goods Sold as shown in the same named account.
2.
DR Cost of Goods Sold $83,328
CR Manufacturing Overhead $83,328
3.
DR Work in Process $5,472
Finished Goods $13,152
Cost of Goods sold $64,704
CR Manufacturing Overhead $83,328
Working
Overhead is distributed as follows;
Work in process = 27,360/ 416,640 * 83,328 = $5,472
Finished Goods = 65,760/ 416,640 * 83,328 = $13,152
Cost of Goods sold = 323,520/416,640 * 83,328 = $64,704
The following information pertains to Bridgeport Co.:
Preferred stock, cumulative:
Par value per share $100
Dividend rate 6%
Shares outstanding 10,000
Dividends in arrears none
Common stock:
Par value per share $10
Shares issued 140,000
Dividends paid per share $1.80
Market price per share $52
Additional paid-in capital $500,000
Unappropriated retained
earnings (after closing) $280,000
Retained earnings
appropriated for
contingencies $300,000
Common treasury stock:
Number of shares 10,000
Total cost $250,000
Net income $580,000
Compute (assume no changes in balances during the past year):
A) Total amount of stockholders' equity in the balance sheet.
B) Earnings per share of common stock.
C) Book value per share of common stock.
D) Payout ratio of common stock.
E) Return on common stock equity per share per share.
Answer:
A. Total amount of stockholders' equity in the balance sheet.
= Preferred stock + Common Stock + Additional Paid-In Capital + Unappropriated retained earnings + Retained earnings appropriated for contingencies - Treasury stock
= (100 * 10,000) + (10 * 140,000) + 500,000 + 280,000 + 300,000 - 250,000
= $3,230,000
B. Earnings per share of common stock.
= (Net Income - Preferred Dividends ) / (Common stock - treasury stock)
= (580,000 - (10,000 * 6% * 100) ) / (140,000 - 10,000)
= $4
C. Book value per share of common stock.
= (Stockholder's equity - Preferred stock) / ( Common stock - Treasury)
= (3,230,000 - (100 * 10,000) ) / (140,000 - 10,000)
= $17.15
D. Payout ratio of common stock
= Dividend per share/ Earnings per share
= 1.8/4
= 45%
E. Return on common stock equity
= (Net Income - Preferred Dividends ) / (Stockholder's equity - Preferred stock)
= (580,000 - (10,000 * 6% * 100) / (3,230,000 - (100 * 10,000) )
= 0.233
= 23.3%
How can the federal reserve influence the interest rate on credit cards?
A. By shutting down credit card companies that set rates too high.
B. By raising taxes on companies that provide high-interest credit cards.
C.By adjusting the discount rate banks pay to borrow.
D.By setting up federal credit card companies with low rates.
Answer:
C. By adjusting the discount rate banks pay to borrow
Explanation:
A P E X
The federal reserve can influence the interest rate on credit cards by raising taxes on companies that provide high-interest credit cards. Thus, option B is appropriate.
The American financial system's heart is the Federal Reserve System. After a string of financial panics prompted the need for centralized supervision of the monetary system to prevent financial crises, it was established on December 23, 1913, following the passage of the Federal Reserve Act.
Banks and other lenders' interest rate-setting processes are influenced by Federal Reserve decisions. To finance anything from a car or home to your purchases using a credit card, higher Fed interest rates equate to more expensive borrowing charges.
Thus, option B is correct.
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Tonya operates a nail salon as a sole proprietorship. Tonya also owns and rents an apartment building. This year Tonya had the following income and expenses. Determine Tonya's AGI (rounded to the nearest dollar). You may assume that Tonya will owe $6,255 in self-employment tax on her salon income, with $3,128 representing the employer portion of the self-employment tax. You may also assume that her divorce from Ted was finalized in 2016.
Interest income $ 28,138
Interest expense on qualified loan to fund dependent son's college tuition 2,000
Salon sales and revenue 215,900
Salaries paid to beauticians 113,125
Nail salon supplies 58,500
Alimony paid to her ex-husband, Ted 15,000
Rental revenue from apartment building 78,050
Depreciation on apartment building 32,250
Real estate taxes paid on apartment building 27,750 Real estate taxes paid on personal residence 15,603 Contributions to charity 10,593
Answer:
Tonya's AGI $70,335
Explanation:
Tonya's AGI:
Revenue from salon $215,900
Salaries paid to beauticians ($113,125)
Nail salon supplies ($58,500)
Salon's operating income $44,275
+
Interest income $28,138
+
Rental revenue from apartment building $78,050
Depreciation on apartment building ($32,250)
Real estate taxes paid on apartment building ($27,750)
Rental income $18,050
-
Alimony paid to her husband $15,000
-
Self-employment tax on salon income $3,128
-
Interest expense on education loan $2,000
=
Tonya's AGI $70,335
Real estate taxes paid on Tonya's house and charitable contributions are itemized deductions (below the line deductions).
On January 1, 2016, Gless Textiles issued $24 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 15% of the issue as an investment.3. On July 1, 2021, when Gless’s common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1. Record the entry for Gless regarding the conversion of the bonds.2. Record the entry for Century regarding the conversion of the bonds.
Answer and Explanation:
The Journal entries are shown below:-
1. Convertible bonds payable Dr, $3,600,000
Premium bonds payable Dr, $16,200
To common stock $3,616,700
(Being conversion of the bonds is recorded)
Working note:
Issue price of the convertible bonds $3,636,000
($24,000,000 × 15% × 101%)
Less: Par value of the bonds $3,600,000
($24,000,000 × 15% × 100%)
Premium on bonds payable $36,000
less: Premium on bonds payable
amortized $19,800
($26,000 × 11 ÷ 20)
Available Balance $16,200
2. Investment in common stock Dr, $3,616,200
To Investment in convertible bonds $3,616,200
To Premium on bond investment $16,200
(Being conversion of the bonds is recorded)
If an investment of $40,000 is earning an interest rate of 12.00%, compounded annually, then it will take for this investment to reach a value of $56,197.12—assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true—assuming that no additional deposits or withdrawals are made? If you invest $5 today at 15% annual compound interest for 82.3753 years, you’ll end up with $100,000. If you invest $1 today at 15% annual compound interest for 82.3753 years, you’ll end up with $100,000.
Answer:
1) we can use the future value formula to solve this:
future value = present value x (1 + r)ⁿ
$56,197.12 = $40,000 x (1 + 12%)ⁿ
1.12ⁿ = $56,197.12 / $40,000 = 1.404928
n = log 1.404928 / log 1.12 = 3 years
2) Which of the following statements is true - assuming that no additional deposits or withdrawals are made?
If you invest $1 today at 15% annual compound interest for 82.3753 years, you’ll end up with $100,000.FV = $1 x 1.15⁸²°³⁷⁵³ = $100,000.65 ✓
A father and mother are planning a savings program to put their daughter through college. Their daughter is now 8 years old. She plans to enroll at the university when she is 18 and it should take her 4 years to complete her education. Currently, the cost per year (for tuition, etc.) is $16,200, but a 2 percent inflation rate in these costs is forecasted. The cost for each year of college will be withdrawn when she turns 18, 19, 20, and 21. The daughter received $13,000 at age 4 and another $2,900 at age 6 from her grandmother; this money, which is invested in an account earning 7.5 percent interest compounded annually, will be used to help meet the costs of the daughter's education. The rest of the costs will be met by money the parents will deposit in the savings account. They will make 4 equal annual deposits to the account, with the first deposit being made today on her 8th birthday and the last one being made on her 11th birthday. These deposits will also earn 7.5 percent interest compounded annually. How large must each deposit (from the parents) be in order to put the daughter through college
Answer:
$4,102.57
Explanation:
we must first calculate the future costs of college:
cost of college year 1 = $16,200 x (1 + 2%)¹⁰ = $19,747.71
cost of college year 2 = $19,747.71 x 1.02 = $20,142.66
cost of college year 3 = $20,142.66 x 1.02 = $20,545.51
cost of college year 4 = $20,545.51 x 1.02 = $20,956.42
in order to determine how much money does the family need to have before college starts we must discount the cost of college by 7.5%:
PV cost of college year 1 = $19,747.71
PV cost of college year 2 = 20,142.66 / 1.075 = $18,737.36
PV cost of college year 3 = $20,545.51 / 1.075² = $17,778.70
PV cost of college year 4 = $20,956.42 / 1.075³ = $16,869.09
total = $73,132.86
the future value of the grandmother's deposits:
$13,000 x (1 + 7.5%)¹⁴ = $35,781.77
$2,900 x (1 + 7.5%)¹² = $6,907.16
total = $42,688.93
that means that you will need to save $73,132.86 - $42,688.93 = $30,443.93 by the time your child turns 18
you will make 4 deposits and their future value will be:
deposit x 1.075¹⁰ = 2.0610D
deposit x 1.075⁹ = 1.9172D
deposit x 1.075⁸ = 1.7835D
deposit x 1.075⁷ = 1.6590D
total = 7.4207D
yearly deposit = $30,443.93 / 7.4207 = $4,102.57
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. As a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. The bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add?
Answer:
It would take is one worker to finish it. The further explanation is given below.
Explanation:
The given value are:
Complete loaves for every hour of labor
= 2.244
Each employee who works every month.
= 160 hours
Monthly output of one worker will be:
= [tex]Total \ loaves\times Total \ hours[/tex]
= [tex]2.344\times 160[/tex]
= [tex]375.04 \ loaves[/tex]
The increased competition, as we know, seems to be "25%" of 1,500 loaves every month.
= [tex]1500\times 25 \ percent[/tex]
= [tex]375[/tex]
= [tex]\frac{375}{375.04}[/tex]
= [tex]0.99[/tex]
Throughout preparation around for job to be completed, Lackely would need to employ another worker although one worker's monthly output is equivalent to 375.04 loaves as well as the minimum additional loaves every month becomes 375, so what it would take is one worker to finish it.
What are the main parts of a cover letter and their purposes?
Answer:
The introduction: Whenever possible, indicate how you came to apply to the company, such as...
responding to an advertised opening
having identified the company through research (do not use this if you didn't do the research as it may be obvious to the employer)
reading about the company or its executives in a publication
receiving a referral from John Jones at XYZ company
The body: It is important to highlight your qualifications and strengths as they relate to the requirements of the position. Amplify or augment information contained in your resume (rather than merely repeating it) and include a few strengths or personal qualities.
The closing: If the position was unadvertised and the resume is unsolicited, indicate that you will follow up in a few days. If you are responding to an advertised position, indicate you are looking forward to the opportunity to discuss how you can contribute to the success of the organization.
Explanation:
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which help people to achieve the objective for which it is written.
What is a cover letter?A one-page professional letter is submitted with your resume when you apply for a job is known as a cover letter. It allows you to reveal a personal side while proving why choosing you is a wise choice.
The cover letter should serve as an argumentative essay that explains to the employer why you are a strong candidate for the position. Include concrete situations from your prior experience that demonstrate your suitability for the job.
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which helps to introduce a person in front of the employer and help to make convince through their conversation about suitability for a particular role.
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why might someone be a poor fit for a retail position?
A. Because they don’t have any sales experience
B. Because they don’t have strong interpersonal skills
C. Because they can’t grow within their position
D. Because they don’t have a four year degree
Answer:B
Explanation:yeah
Someone who do not have any sales experience might be a poor fit for a retail position. Thus option(a) is correct.
What is retail?Retail businesses sells items or services to customers for their consumption or use.
A retail store is the sale of items or services in small quantities to customers in-store or online. Grocery, clothing and drug stores re examples of retail.
Retailers enable customers to access a wide variety of products and services worldwide. The retail businesses helps support the country's economy and create additional workplaces.
They are for customers convenience and they bring ready to consume products to people and let them get everything they need for their happy living.
`They are the part of a bigger system called a supply chain. It is a crucial part of the supply chain since it links a manufacturer with customer.
The retail industry influences the economic development of a country. Stores sell goods and pay taxes to the country.
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Kalani is an account executive with a medical device company that sells sophisticated camera equipment used in surgical procedures such as knee and hip surgery. Therefore, she primarily works with orthopedic surgeons and hospital surgical departments to promote her company's products. Kalani's territory includes five counties in the southwestern part of Tennessee. Kalani can easily visit each customer account once a month to maintain contact. What is the primary difference between business markets and the consumer markets described by Kalani's customer accounts
Answer:
The key difference throughout the particular circumstance is defined throughout the subsection following.
Explanation:
Fewer clients than consumer businesses have been composed of corporate sectors. Since consumers throughout the business community are only found throughout hospitals for treatment, they have become less frequent, whereas consumers mostly in the commercial market include customers across the world, unlike pharmacies where there would be some very buyers.Toyota has been working alongside us for years, but we just heard the bad news: they’re not renewing our electric vehicle (EV) collaboration when the current project is completed. Their research and development (R&D) team feels that they’ve finally caught up, and they’re going to start using their own EV components in their cars—even though the range is less than ours, the components are less expensive.This represents an example of which of the following competitive forces?a. Bargaining power of suppliersb. Bargaining power of buyers (customers)
Answer:
The right approach is Option a (Bargaining power of suppliers).
Explanation:
The concept is such an industry influences the buyer's business climate and determines the potential including its buyer to attain profitability.The meaning is basically how very much jurisdiction a single provider has. By supplier, I represent the industries that create the manufactured goods that even the sellers refine into the finished product to something like the sellers throughout the business. If there are several suppliers during the sector because each supplier is indeed very poor.Opportunity costs are _____.
the costs related to the product that have to be paid regardless of the amount you sell
the costs that change depending on a company's performance
the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business
none of the above
Answer:
the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business
Explanation:
Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2017, she exchanges it with Lisa Martin (an unrelated party) for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. As the real estate market on the East Coast is thriving, on September 1, 2018, Lisa sells the land she acquired for $120,000.If an amount is zero, enter "0".a. On January 4, 2017, Tanya's realized gain for the West Coast land is $, her recognized gain is $, and her adjusted basis is $.b. On January 4, 2017, Lisa's realized gain for the East Coast land is $, her recognized gain is $, and her adjusted basis is $.c. Lisa's realized gain from the September 1, 2018, sale is $. Her recognized gain from the September 1, 2018 sale is$.d. What effect does Lisa's 2018 sale have on Tanya?Lisa’s sale of the East Coast land has for Tanya.e. Complete the letter to Tanya advising her of the tax consequences of this exchange.
Answer:
Following are the solution to the given point:
Explanation:
In point a:
Sum of:
= ($89,000 + $3,000)
= $92,000
Modified foundation= -$80,000
A real profit= $12,000
Gain (boot received) recognised = $3,000
Tanya's West Coast Changed Base:
Fair Market = $89,000
Posted benefit:
= ($ 12,000- $ 3,000)
= $ 9,000
Adjusted Base =$80,000
In part b:
Realized benefit calculation:
Sum of = $92,000
Modified Base =$72,000 + $3,000 = $75,000
A real profit= $17,000
gain was accepted = $0
Changed base of Martin to the West Coast:
Fair Market = $92,000
Gain deferred = ($17,000-$0) = $ 17,000
Adjusted Base = $75,000
In point c:
Recognized benefit from Martin:
Value = $1,20,000
Base adjusted= $ 75,000
actual gain = $45,000
Gain Recognized= $45,000
In point d:
Tanya has little effect mostly on selling by Lisa of an eastern seaboard ground. There is no supposed selling care among Lauren and Tanya after selling property on the eastern seaboard since they are unrelated parties.
In point e:
sum of = $92,000.
Tanya 's acceptable basis is $80,000 ($89,000-($12,000-$3,000)).
actual benefit = $ 12,000
gain benefit = $3,000
Since the trade is deemed a non-taxable trade, $3,000 is recognized of the total $12,000 benefit. Its ground earned is $80,000 adjusted.
Suppose you run a software company and you want to determine if there is a difference between the 'debugging unit' (population 1) and 'after sales services unit' (population 2) by considering the return on investment for each unit. you have acsess to information from a random survey which is done for 24 companies for population 1 which reveals that the average return on investment (ROI) for each dollar you invest is.12, while for population, the survey is performed on 30 companies and the average ROI is found to be .30. You also know from the previously published results that the standard deviation for any ROI in the software industry is .25 What is the value of the test statistic for your research hypothesis?
a. -1.3145.
b. -1.2728.
c. -2.3738.
d. -2.2411.
e. -2.6291.
Answer:
e. -2.6291.
Explanation:
from the information available in this question,
mean x₁ = 0.12
mean x₂ = 0.30
n₁ = 24
n₂ = 30
n1 = 24 < 30
n₂ = 30 <= 30
therefore we would be solving this using the t test.
we have
[tex]t =\frac{x_{1-x_{2} } }{s} *\sqrt{\frac{n1n2}{n1+n2} }[/tex]
inserting values whe have:
[tex]t=\frac{0.12-0.30}{0.25} *\sqrt{\frac{24*30}{24+30} }[/tex]
[tex]t = -0.72 *\sqrt{13.33333}[/tex]
[tex]t=-0.72*3.6514836[/tex]
[tex]t=-2.629067947[/tex]
this is approximately
[tex]-2.6291[/tex]
therefore option e answers this question.
Use the following information to answer the question below:
Acquirer purchases 100% of target by issuing $100 million in new debt to purchase target shares, carrying an interest rate of 10%
Excess cash is used to help pay for the acquisition
Acquirer expects to be able to close down several of the target company’s old manufacturing facilities and save an estimated $2 million in the first year
Target PP&E is written up by $25 million to fair market value
Investment bankers, accountants, and consultants on the deal earned $30 million in fees
Which of the following adjustments would be made to the pro forma income statement?
a) Advisory fee expense of $30 million
b) Depreciation expense increase due to PP&E write-up
c) Pre-tax synergies of $2 million
d) All of the above
Answer:
d) All of the above
Explanation:
Pro forma income statements are basically estimated or expected income statements which do not necessarily comply with US GAAP norms (are not useful in legal terms), but should reflect future outcomes.
In this case, Acquirer didn't simply decide to purchase Target and carried the operation immediately. The process is long and complicated and many times companies negotiate fair values and future cash flows. If you analyze the acquisition process of Whole Foods by Amazon it is very interesting. After negotiations Amazon paid 4 times the capitalization value of Whole Foods.
Before the actual process ends, Acquirer should present a pro forma statement and it must include all the relevant issues about the merger. They already know how much the transaction will cost, what actions will be taken to increase profits and any other major event.
Roca, Inc., manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated MOH Cost Expected Activity Product M6 Product X7 Total Labor related DLH $152,100 3,000 4,800 7,800 Product orders orders $63,035 400 300 700 Order size Machine hours $505,452 3,700 3,600 7,300 The total overhead to be applied to Product X7 using activity-based costing is closest to:
Answer:
$369,879
Explanation:
The computation of the total overhead to be applied is shown below:
Product X7
Activity Cost Estimated Expected Activity Expected Overhead
Pool Overhead Total Rate Activity applied
Cost Activity
Labor
-related $152,100 7,800 $19.50 4800 $93,600
Production
orders $63,035 700 $90.05 300 $27,015
Order size $505,452 7300 $69.24 3600 $249,264
Total $720,587 $369,879
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,000 units at $40 Apr. 19 Sale 2,500 units June 30 Purchase 4,500 units at $44 Sept. 2 Sale 5,000 units Nov. 15 Purchase 2,000 units at $46 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.
Answer:
Cost of goods sold Ending Inventory
April 19 2,500 at $40 = $100,000 1,500 at $40 = $60,000
Sept 2 5,000 at $49.67 248,350 1,000 at $49.67 = 49,670
Explanation:
Data and Calculations:
Date Details Units Cost price Total cost Inventory
Jan. 1 Inventory 4,000 units at $40 $160,000
Apr. 19 Sale 2,500 units $40 $100,000 60,000
June 30 Purchase 4,500 units at $44 298,000
Sept. 2 Sale 5,000 units $50 248,350 49,670
Nov. 15 Purchase 2,000 units at $46
b) Cost of goods sold c) Ending Inventory
April 19 2,500 at $40 = $100,000 1,500 at $40 = $60,000
Sept 2 5,000 at $49.67 248,350 1,000 at $49.67 = 49,670
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Molding Finishing Total
Estimated total machine-hours (MHs) 3,250 3,000 6,250
Estimated total fixed manufacturing overhead cost $27,000 $4,700 $31,700
Estimated variable manufacturing overhead cost per MH $ 1.00 $ 2.00
During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job A Job M
Direct materials $15,900 $ 9,700
Direct labor cost $ 23,000 $ 9,500
Molding machine-hours 1,250 2,000
Finishing machine-hours 1,750 500
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decimal places.)
a) $58,550
b) $99,500
c) $76,115
d) $17,565
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated total machine-hours (MHs)= 6,250
Estimated total fixed manufacturing overhead cost= $31,700
Estimated variable manufacturing overhead cost= (1*3,250 + 2*3,000)= $9,250
Job A
Direct materials $15,900
Direct labor cost $ 23,000
Molding machine-hours 1,250
Finishing machine-hours 1,750
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (31,700 + 9,250)/6,250
Predetermined manufacturing overhead rate= $6.55 per machine hour
Now, we can calculate the total cost of Job A:
Total cost= 15,900 + 23,000 + 6.55*3,000
Total cost= $58,550
Finally, the selling price for Job A:
Selling price= 58,550*1.3= $76,115
Does Diamond’s recording of the August 2010 ‘‘continuity’’ payments and August/September 2011 ‘‘momentum’’ payments as the purchases of fiscal 2010 and fiscal 2011, respectively, comply with the U.S. GAAP (Generally Accepted Accounting Principles)? Why or why not? Provide support from the accounting literature, including the FASB Concept Statements, in support of your argument
Answer:
The correct response is "No".
Explanation:
The August year 2010 "continuity" transactions reported by Diamonds as well as the August/September year 2011 "momentum" transactions or transfers do not cooperate within U.S. GAAP. Diamond said that because it was truly compensating for products they had indeed purchased, the fees are there for potential products to be obtained.Which of the following is the correct order of market structure from most competitive to least?
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly
Oligopoly, Perfect Competition, Monopolistic Competition, Monopoly
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
Answer:
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
Explanation:
In perfect competition, many sellers are competing to sell an identical product. The market has very many small suppliers. No single supplier dominates the market, meaning no seller has the power to influence the price. The market has very many buyers as well. Suppliers have the freedom to enter or exit the market with ease.
Monopolist competition has very many sellers selling similar but differentiated products. Due to the differentiated aspect, sellers can set the prices for their products. The market has very many buyers.
An oligopoly is where a few big suppliers dominate the market. The oligopoly market may have other smaller suppliers whose market share is a small percentage. Oligopoly may stock or manufacture identical or differentiated products.
A monopoly is where a dominant supplier is selling a particular product without competition. Only one supplier is selling that type of product. An oligopoly can sell lifetime solutions through books.
Answer:
Monopolistic competition
Explanation:
X reported the following unit costs information associated with one of its products A1: Direct materials $110 Direct manufacturing labor 90 Variable manufacturing overhead 45 Fixed manufacturing overhead 33 Sales commissions (2% of sales) 10 Research & Development 20 After-sales support 5 Administrative salaries 28 Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What are the direct variable costs per unit associated with Product A1?
Answer:
$255
Explanation:
Direct variable costs per unit associated with Product A1 can be calculated by adding direct material, direct manufacturing labor, variable manufacturing overhead and sales commission.
Calculation
Direct variable costs per unit associated with Product A1 = Direct materials + Direct manufacturing labor + Variable manufacturing overhead + Sales commissions
Direct variable costs per unit associated with Product A1 = $110 + $90 + $45 + $10
Direct variable costs per unit associated with Product A1 = $255
Assume that Minneapolis’ sales by major market are: Market Minneapolis Medical Dental Sales $ 390,000 100 % $ 260,000 100 % $ 130,000 100 % Variable expenses 234,000 60 % 169,000 65 % 65,000 50 % Contribution margin 156,000 40 % 91,000 35 % 65,000 50 % Traceable fixed expenses 46,800 12 % 13,000 5 % 33,800 26 % Market segment margin 109,200 28 % $ 78,000 30 % $ 31,200 24 % Common fixed expenses not traceable to markets 11,700 3 % Office segment margin $ 97,500 25 % The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,500 or increase sales in the Dental market by $39,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?
Answer:
1. Medical market $10,725
2. Dental market $14,300
3. Dental market
Explanation:
1. Calculation for How much would the company's profits increase (decrease) in the Medical Market
MEDICAL MARKET
Increase in sales $45,500
Contribution Magin ratio 35%
Increase in contribution margin $15,925
(Medical $45,500*35%=$15,925)
Less increase in Advertisement $5,200
Increase in company profit
$10,725
Based on the above calculation Medical Market profit will increase by $10,725
2. Calculation for How much would the company's profits increase (decrease) in the Dental Market
DENTAL MARKET
Increase in sales $39,000
Contribution Magin ratio 50%
Increase in contribution margin $19,500
(Dental $39,000*50%=$19,500)
Less increase in Advertisement $5,200
Increase in company profit
$14,300
Based on the above calculation Dental Market profit will increase by $14,300
3. Based on the above calculation I would recommend that the company should focus its advertising campaign on DENTAL MARKET because DENTAL MARKET has the highest profit of the amount of $14,300 than Medical market which has a profit of $10,725.
Average stock of raw material and raw material consumption per annum are Rs.1,24,000 and Rs.8,42,000 respectively. Consider 365days. Calculate raw material consumption period.
Answer: 54 days
Explanation:
Raw Material consumption period = Average stock of Raw Material / Average stock of Raw material Consumption per day
Average stock of Raw material Consumption per day = Raw Material consumption per Annum / 365
= 842,000/365
= Rs. 2,306.85
Raw material consumption period
= 124,000/2,306.85
= 53.75
= 54 days
What is an example of brand promotion
A.charging a premium
B.providing a warranty
C.providing after-sales service
D.attending a trade show
Answer:
D
Explanation:
attending a trade show
Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $16,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,100. The equipment had a five-year useful life and a $5,800 expected salvage value. Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements
Answer:
$716 and $12,300
Explanation:
Original Cost = $16,000 + $2,100
Original Cost = $18,100
Double decline rate = 100/5*2
Double decline rate = 40%
First Year Depreciation = $18,100*40%
First Year Depreciation = $7,240
Second Year Depreciation = $18,100*60%*40%
Second Year Depreciation = $18,100*0.60*0.40
Second Year Depreciation = $4,344
Third Year Depreciation = ($18,100 - $7,240 - $4,344 -$5,800)
Third Year Depreciation = $716
Accumulated Depreciation = $7,240 + $4,344 + $716
Accumulated Depreciation = $12,300