Answer:
Results are below.
Explanation:
Giving the following information:
Variable expense= $26,770 ($5,240 increase each quarter)
Fixed expense= $41,680
First, we will calculate the total cost per quarter:
Q1= 26,770 + 41,680
Q1= $68,450
Q2= (26,770 + 5,240) + 41,680
Q2= $73,690
Q3= (32,010 + 5,240) + 41,680
Q3= $78,930
Q4= (37,250 + 5,240) + 41,680
Q4= $84,170
Now, the total cost:
Total annual cost= $305,240
Sage Company began operations at the beginning of 2021. The following information pertains to this company.
1. Pretax financial income for 2021 is $87,000.
2. The tax rate enacted for 2021 and future years is 20%.
3. Differences between the 2021 income statement and tax return are listed below:
a. Warranty expense accrued for financial reporting purposes amounts to $6,600. Warranty deductions per the tax return amount to $1,900.
b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $84,500. Gross profit on construction contracts for tax purposes amounts to $66,300.
c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $57,900. Depreciation of these assets amounts to $84,300 for the tax return.
d. A $3,200 fine paid for violation of pollution laws was deducted in computing pretax financial income.
e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500.
4. Taxable income is expected for the next few years. (Assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.)
Required:
a. Compute taxable income for 2021.
b. Compute the deferred taxes at December 31, 2021, that relate to the temporary differences described above.
c. Prepare the journal entry to record income tax expense
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a. Taxable income for 2021.
Sage Company:
Computation of Taxable income and income tax for 2021
Pretax financial Income = $87000
Permanent differences:
Fine for Pollution = $3200
Interest revenue on municipal bonds = -$1500
Temporary differences:
Less: Excess of depreciation as per tax over books = -$26400
Add: Warranty expense in books higher than as per tax = $4700
Less: Gross profit as per books higher than as per tax on construction contracts = -$18200
Taxable Income = $48800
Income Tax (20%) = $9760
b. Deferred Taxes:
Deferred tax assets = $4700*20% = $940
Deferred tax liability = ($26,400 + $18,200) * 20% = $8920
c. Note: Journal Entries are attached in the attachment below.
Compare and contrast the three most common types of healthcare indemnity plans.
Beginning inventory 0
Units produced 49,000
Units sold 44,000
Selling price per unit $81
Selling and administrative expenses:
Variable per unit $2
Fixed (total) $562,000
Manufacturing costs:
Direct materials cost per unit $18
Direct labor cost per unit $9
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost (total) $980,000
Requirement 1:
Assume that the company uses absorption costing.
(a) Determine the unit product cost. (Omit the "$" sign in your response.)
Unit product cost $
(b)
Prepare an income statement for May. (Input all amounts as positive values. Omit the "$" sign in your response.)
(Click to select)Cost of goods manufacturedBeginning inventoryEnding inventoryGoods available for saleSales $
(Click to select)SalesEnding inventoryBeginning inventoryGoods available for saleCost of goods sold
(Click to select)Gross lossGross profit
(Click to select)SalesEnding inventoryGoods available for saleSelling and administrative expensesCost of goods manufactured
(Click to select)Net operating lossNet operating income
$
Answer:
a) The unit product cost under absorption costing is $51.
b) Income Statement for May:
Sales Revenue $3,564,000
Cost of goods sold 2,244,000
Gross profit $1,320,000
Selling and admin.
expenses 650,000
Net operating income $670,000
Explanation:
a) Data and Calculations:
Beginning inventory 0
Units produced 49,000
Units sold 44,000
Ending inventory 5,000
Selling price per unit $81
Selling and administrative expenses:
Variable per unit $2
Fixed (total) $562,000
Manufacturing costs:
Direct materials cost per unit $18
Direct labor cost per unit $9
Variable manufacturing
overhead cost per unit $4
Total direct costs per unit $31
Fixed manufacturing overhead cost (total) $980,000
Unit product cost under absorption costing:
Manufacturing costs:
Direct materials cost per unit $18
Direct labor cost per unit $9
Variable manufacturing
overhead cost per unit $4
Total direct costs per unit $31
Fixed manufacturing
overhead cost (total) $20 ($980,000/49,000)
Total unit product cost = $51
Cost of goods manufactured = $2,499,000 ($51 * 49,000)
Cost of goods sold = $2,244,000 ($51 * 44,000)
Selling and administrative expenses = $650,000 ($2 * 44,000 + 562,000)
Concord Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $20200 Deposits in transit 930 Notes receivable and interest collected by bank 4880 Bank charge for check printing 130 Outstanding checks 11100 NSF check 1000 The adjusted cash balance per books on August 31 is $12850. $13720. $23950. $24880.
Answer:
C. $23,950
Explanation:
Given the above information, the adjusted cash book balance is computed as:
Adjusted cash balance per books = Cash opening + Collection by bank - Bank charge check printing - NSF check
= $20,200 + $4,880 - $130 - $1,000
= $23,950
Therefore, the adjusted cash balance per books on August 31 is $23,950
Computing Basic and Diluted Earnings per Share Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May 1, an additional 9,000 shares of common stock were issued. On July 1, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per share dividend rate, and each share may be converted into 2 shares of common stock. Soliman Corporation’s 2018 net income is $230,000.
Required
a. Compute earnings per share for 2018. Round your answer to two decimal places.
b. Compute diluted earnings per share for 2018. Round your answer to two decimal places.
Answer:
Soliman Corporation
1. Basic EPS
= $6.18 per share
2. Diluted EPS
= $5.23 per share
Explanation:
a) Data and Calculations:
Convertible Preferred Stock = 5,000 or 10,000 Common Shares
Common Stock:
January 1, 2018 = 25,000
May 1, 2018 Issued 9,000
July 1, 2018 Treasury (6,000)
September 1, 2018 Treasury 6,000
Total outstanding 34,000
Converted preferred stock 10,000
Total outstanding 44,000
2018 Net Income = $230,000
Preferred dividend 20,000 ($4 * 5,000)
Income for Common $210,000
Basic Earnings per share = $210,000/34,000 = $6.18
Diluted Earnings per share = $230,000/44,000 = $5.23
define foreclosure economics.
Answer:
Foreclosure is the legal process by which a lender attempts to recover
Explanation:
Item4 3 points eBookHintPrintReferencesItem 4 Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Cost June 1 Beginning 12 $ 8 $ 96 11 Purchase 38 9 342 24 Purchase 20 11 220 30 Ending 24 Required: Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Answer:
a. FIFO
cost of ending inventory = $256
cost of goods sold = $402
b. LIFO
cost of ending inventory = $204
cost of goods sold = $454
c. Weighted average cost
cost of ending inventory = $225.60
cost of goods sold = $432.40
Explanation:
Periodic method means cost of sales and inventory balance are determined at the end of the period.
Step 1 : Units Sold
Units Sold = Units available for Sale - Units in Inventory
= (12 + 38 + 20) - 24
= 46
Step 2 : FIFO
FIFO assumes that the units to arrive first, will be sold first.
cost of ending inventory = 20 x $11 + 4 x $9 = $256
cost of goods sold = 12 x $8 x 34 x $9 = $402
Step 3 : LIFO
LIFO assumes that the units to arrive last, will be sold first.
cost of ending inventory = 12 x $9 + 12 x $8 = $204
cost of goods sold = 20 x $11 x 26 x $9 = $454
Step 4 : Weighted average cost
Weighted average cost method calculates a new unit cost with every purchase made. this unit cost is then used to calculated cost of sale and ending inventory.
Unit Cost = Total Costs ÷ Units available for sale
= (12 x $8 + 38 x $9 + 20 x $11 ) ÷ (12 + 38 + 20)
= $9.40
cost of ending inventory = Units in Inventory x Unit Cost
= 24 x $9.40
= $225.60
cost of goods sold = Units Sold x Unit Cost
= 46 x $9.40
= $432.40
In this simulation, theoretical utilization of the intensive care unit (ICU) is calculated as the flow rate of patients that arrive for service at the ICU in a given unit of time divided by the ICU’s capacity to serve customers in that same unit of time. You can think about this as demand/capacity. What is the theoretical utilization of the ICU if the mean inter-arrival time is 4 hour(s), the mean length of stay is 6 hour(s), and there are 4 beds in the ICU?
Answer:
The theoretical utilization of the ICU is:
= 0.25 or 25%
Explanation:
Inter-arrival time or flow rate of patients that arrive for service at the ICU = 4 hours
Mean length of stay = 6 hours
ICU's capacity to serve customers in 6 hours = 4*6 = 24 bed-hours
Total demand = 6 hours
Therefore, the theoretical utilization = flow rate of patients that arrive for service at the ICU in a given unit of time divided by ICU's capacity to serve customers in that same unit of time
= 6 hours/24 bed-hours
= 0.25
In its income statement for the year ended December 31, 2022, Pharoah Company reported the following condensed data. Salaries and wages expenses $595,200 Loss on disposal of plant assets $106,880 Cost of goods sold 1,263,360 Sales revenue 2,828,800 Interest expense 85,200 Income tax expense 32,000 Interest revenue 83,200 Sales discounts 204,800 Depreciation expense 396,800 Utilities expense 140,800
Prepare a multiple-step income statement. (List other revenues before other expenses.)
Pharoah Company
Income Statement
Answer:
Net income is $86,960.
Explanation:
A multi-step income statement is an income statement which dsplayes th gross profit and the detailed of each category of expenses and incomes to arrive at a company's net income for a particular period.
A multi-step income statement can be prepared as follows:
Pharoah Company
Income statement
For the year ended December 31, 2022
Details $
Sales revenue 2,828,800
Sales discounts (204,800)
Net sales revenue 2,624,000
Cost of goods sold (1,263,360)
Gross profit 1,360,640
Operating expenses:
Salaries and wages expenses (595,200)
Depreciation expense (396,800)
Utilities expense (140,800)
Operating income 227,840
Other income (loss):
Loss on disposal of plant assets (106,880)
Interest income (expense):
Interest expense (85,200)
Interest revenue 83,200
Income before tax 118,960
Income tax expense (32,000)
Net income 86,960
Which account will a merchandising business close out at the end of the year?
A. Accounts receivable
B. Sales returns and allowances
c. Prepaid insurance
D.
Land
E. Accumulated depreciation
Answer: B. Sales returns and allowances
Explanation:
Accounts receivable is not closed out because people will still be owning at year end. Prepaid Insurance is an unrecognized payment for an expense in another period so it is not closed out either.
Land is a fixed asset so it is not closed and Accumulated depreciation will be left open to keep depreciating assets.
Only account that will be closed is the Sales returns and Allowances account as these are periodic entries and so should be closed out in the period.
Answer:
B: Sales returns and allowances
Explanation:
edu :)
Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions, at compelling values. The items, reported on its income statement for a recent year (ended March 31) are presented here (dollars in thousands), in alphabetical order:
Cost of goods sold $1,101,349
Interest expense 650
Net revenue 2,005,531
Other selling, general, and administrative expenses 386,883
Provision for income taxes 99,387
Weighted average shares outstanding 66,832
a. Prepare a multiple-step, consolidated income statement, with a presentation of basic earnings per share. (Enter your answers in thousands not in dollars. Round "Basic earnings per share" to 2 decimal places.)
b. What is the gross profit percentage? (Round your answer to 1 decimal place.)
Answer:
Aeropostale, Inc.
Multi Step Income Statement for the year ended March 31:
Net revenue $2,005,531
Cost of goods sold $1,101,349
Gross profit $904,182
Other selling, general, and
administrative expenses 386,883
Operating income $517,299
Interest expense 650
Income before taxes $516,549
Provision: income taxes 99,387
Net income $417,262
Basic EPS = $6.24 per share
b. Gross profit percentage = $904,182/$2,005,531 * 100
= 45.1%
Explanation:
a) Data and Calculations:
Cost of goods sold $1,101,349
Interest expense 650
Net revenue 2,005,531
Other selling, general, and administrative expenses 386,883
Provision for income taxes 99,387
Weighted average shares outstanding 66,832
Basic EPS = $6.24 per share ($417,262/66,832)
Gross profit percentage = $904,182/$2,005,531 * 100
= 45.1%
Warbler Corporation has Federal taxable income of $10,000,000. Warbler apportions 70% of its manufacturing income to State C. Warbler generates $4,000,000 of nonapportionable income each year, and 30% of that income is allocated to State C. Applying the state income tax modifications, Warbler's total business income from the manufacturing operation this year is $12,000,000.
a. How much of Warbler's manufacturing income does State C tax?
b. How much of Warbler's allocable income does State C tax?
Answer: See Explanation
Explanation:
a. How much of Warbler's manufacturing income does State C tax?
Warbler business income = $12,000,000.
Percentage apportioned to State C = 70%.
Therefore, the amount of Warbler's manufacturing income that State C tax will be:
= $12,000,000 × 70%
= $12,000,000 × 0.7
= $8,400,000.
b. How much of Warbler's allocable income does State C tax?
This will be 30% of the nonapportionable income generated by Warbler. This will be:
= $4,000,000 × 30%
= $4,000,000 × 0.3
= $1,200,000
During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,000 were sold. Operating data for the month are summarized as follows:
1 Sales $4,320,000.00
2 Manufacturing costs:
3 Direct materials $1,600,000.00
4 Direct labor 1,440,000.00
5 Variable manufacturing cost 240,000.00
6 Fixed manufacturing cost 320,000.00 3,600,000.00
7 Selling and administrative expenses:
8 Variable $144,000.00
9 Fixed 25,000.00 169,000.00
1 Sales $4,320,000.00
2 Manufacturing costs:
3 Direct materials $1,280,000.00
4 Direct labor 1,152,000.00
5 Variable manufacturing cost 192,000.00
6 Fixed manufacturing cost 320,000.00 2,944,000.00
7 Selling and administrative expenses:
8 Variable $144,000.00
9 Fixed 25,000.00 169,000.00
Required:
1. Using the absorption costing concept, prepare income statements for (a) July and (b) August.
2. Using the variable costing concept, prepare income statements for (a) July and (b) August.*
3a. Explain the reason for the differences in the amount of income from operations in (1) and (2) for July.
3b. Explain the reason for the differences in the amount of income from operations in (1) and (2) for August.
4. Based on your answers to (1) and (2), did Western Creations Company operate more profitably in July or in August? Explain.
Answer:
Western Creations Company
1. Income Statements for July and August, under absorption costing:
July August
Sales Revenue $4,320,000.00 $4,320,000.00
Cost of goods sold 3,240,000.00 2,649,600.00
Gross profit $1,080,000.00 $1,670,400.00
Total selling & admin. exp. $169,000.00 $169,000.00
Net Income $911,000.00 $1,501,400.00
2. Income Statements for July and August, using variable costing:
July August
Sales Revenue $4,320,000.00 $4,320,000.00
Variable cost of goods sold 3,081,600.00 2,491,200.00
Contribution margin $1,238,400.00 $1,828,800.00
Fixed expenses:
Total fixed costs 345,000.00 345,000.00
Net income $893,400.00 $1,483,800.00
3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).
3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).
Explanation:
a) Data and Calculations:
Number of hats produced = 80,000
Number of hats sold = 72,000
Ending inventory = 8,000
1 Sales $4,320,000.00
2 Manufacturing costs: July August
3 Direct materials $1,600,000.00 $1,280,000.00
4 Direct labor 1,440,000.00 1,152,000.00
5 Variable manufacturing cost 240,000.00 192,000.00
6 Fixed manufacturing cost 320,000.00 320,000.00
Total manufacturing costs $3,600,000.00 $2,944,000.00
Under absorption costing:
Unit cost = $45 ($3,600,000/80,000) $36.80 ($2,944,000/80,000)
Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)
Ending Inventory = 360,000 ($45*8,000) 294,400 ($36.8*8,000)
7 Selling and administrative expenses:
8 Variable $144,000.00 $144,000.00
9 Fixed 25,000.00 25,000.00
Total selling & admin. exp. $169,000.00 $169,000.00
Under variable costing:
2 Manufacturing costs:
3 Direct materials $1,600,000.00 $1,280,000.00
4 Direct labor 1,440,000.00 1,152,000.00
5 Variable manufacturing cost 240,000.00 192,000.00
8 Variable selling & admin cost 144,000.00 144,000.00
Total variable costs = $3,424,000.00 $2,768,000.00
Unit variable cost = $42.80 ($3,424,000/80,000) $34.60
Cost of goods sold = $3,081,600 ($42.80 * 72,000) $2,491,200
Ending Inventory = 342,400 ($42.80 * 8,000) 276,800
6 Fixed manufacturing cost $320,000.00 $320,000.00
9 Fixed selling & admin. cost 25,000.00 25,000.00
Total fixed costs = $345,000.00 $345,000.00
In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:
Cash balance per company books on January 30 $5,325
Deposits in transit at month-end $1,920
Outstanding checks at month-end $580
Bank service charges $31
EFT automatically deducted monthly, not yet recorded by Maxi $500
An NSF check returned on a customer account $325
The adjusted cash balance per the books on January 31 is:_________
Answer:
$4,469
Explanation:
Calculation for what The adjusted cash balance per the books on January 31 is
Using this formula
Adjusted cash balance = cash balance per books -bank service charges - EFT automatically deducted - NSF Check
Let plug in the formula
Adjusted cash balance= $5325 - $31 -$500 -$325
Adjusted cash balance= $4,469
Therefore The adjusted cash balance per the books on January 31 is $4,469
Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year: Depreciation Expense $15,600 Insurance Expense 7,640 Miscellaneous Expense 6,080 Rent Expense 63,000 Service Revenue 299,500 Supplies Expense 3,740 Utilities Expense 24,020 Wages Expense 235,600 Prepare an income statement. Use a minus sign to indicate a net loss.
Answer:
-$56,180
Explanation:
Preparation of an income statement
INCOME STATEMENT
Service revenue $299,500
Less Expenses:
Depreciation expense $15,600
Insurance expense $7,640
Miscellaneous expense $6,080
Rent expense $63,000
Supplies expense $3,740
Utilities expense $24,020
Wages expense $235,600
Total expenses $355,680
Net loss -$56,180
($299,500-$355,680)
Therefore the income statement balance will be -$56,180
At December 31, 2021, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $58 million related to a current liability Deferred tax asset of $38 million related to a noncurrent liability Deferred tax liability of $124 million related to a noncurrent asset Deferred tax liability of $76 million related to a current asset Moonlight Bay should report in its December 31, 2021, balance sheet a: Multiple Choice Noncurrent deferred tax liability of $104 million. Current deferred tax liability of $20 million. Noncurrent deferred tax asset of $86,000 and a non-current deferred tax liability of $48 million.
Answer: Noncurrent deferred tax liability of $104 million
Explanation:
Deferred tax asset of $58 million related to a current liability
Deferred tax asset of $38 million related to a noncurrent liability Deferred tax liability of $124 million related to a noncurrent asset
Deferred tax liability of $76 million related to a current asset
The total defered tax liability from the question will be:
= $124 million + $76 million
= $200 million
The total defered tax asset will be:
= $58 million + $38 million
= $96 million
Then, the net deffered tax liability will be: = $200 million - $96 million
= $104 million
The answer is "Noncurrent deferred tax liability of $104 million".
On January 1, Alan King decided to deposit $58,800 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8% annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required:
Answer:
FV= $79,996.75
Explanation:
Giving the following information:
Initial investment (PV)= $58,800
Interest rate (i)= 8% compounded annually
Number of periods (n)= 4 years
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 58,800*(1.08^4)
FV= $79,996.75
he adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 11,000 Accounts receivable 163,000 Prepaid rent 9,000 Supplies 31,000 Equipment 330,000 Accumulated depreciation $ 126,000 Accounts payable 10,000 Salaries payable 3,700 Interest payable 1,700 Notes payable (due in two years) 39,000 Common stock 240,000 Retained earnings 214,400 Dividends 26,000 Service revenue 300,000 Salaries expense 200,000 Advertising expense 75,000 Rent expense 16,000 Depreciation expense 38,000 Interest expense 2,800 Utilities expense 33,000 Totals $ 934,800 $ 934,800 Prepare an income statement for China Tea Company for the year ended December 31, 2021:
Answer:
China Tea Company Income Statement
For the Year Ended December 31, 2021
$ $
Revenue
Service Revenue 300,000
Less Expenses:
Salaries expense 200,000
Advertising expense 75,000
Rent expense 16,000
Depreciation expense 38,000
Interest expense 2,800
Utilities expense 33,000 (364,800)
Net Loss ( 64,800)
Turnbull Co. is considering a project that requires an initial investment of $270,000. The firm will raise the $270,000 in capital by issuing $100,000 of debt at a before-tax cost of 8.7%, $30,000 of preferred stock at a cost of 9.9%, and $140,000 of equity at a cost of 13.2%. The firm faces a tax rate of 40%. What will be the WACC for this project
Answer:
The answer 9.88%
Explanation:
Value of Debt = $100,000
Value of Preferred Stock = $30,000
Value of Equity = $140,000
Weight of Debt = $100,000 / $270,000
Weight of Debt = 0.37
Weight of Preferred Stock = $30,000 / $270,000
Weight of Preferred Stock = 0.11
Weight of Equity = $140,000 / $270,000
Weight of Equity = 0.52
After Tax Cost of Debt = 8.7% (1 – 0.40)
After Tax Cost of Debt = 5.22%
WACC = (Weight of Debt x After Tax Cost of Debt) + (Weight of Preferred Stock x Cost of Preferred Stock) + (Weight of Equity x Cost of Equity)
WACC = (0.37 x 5.22%) + (0.11 x 9.9%) + (0.52 x 13.2%)
WACC = 9.88%
define liquidity economics.
Explanation:
means how quickly you can get your hands on your cash. In simpler terms, liquidity is to get your money whenever you need it.
Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. For each form of private spending, indicate whether it represents consumption or investment.
Private Spending Consumption Investment
People buying houses
People buying newspapers
People buying food
Firm buying trash cans
Firm buying computers
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending Consumption Investment
Building tunnels
Buying medical equipment
Building public housing
Payment for public safety employees
Answer:
For each form of private spending, indicate whether it represents consumption or investment.
Private Spending
People buying houses Investment
People buying newspapers Consumption
People buying food Consumption
Firm buying trash cans Investment
Firm buying computers Consumption
For each form of government spending, indicate whether it represents consumption or investment.
Government Spending
Building tunnels Investment
Buying medical equipment Investment
Building public housing Investment
Payment for public safety employees Consumption
Explanation:
Suppose you are the money manager of a $5.21 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 780,000 (0.50) C 1,260,000 1.25 D 2,850,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 5%, what is the fund's required rate of return
Answer: 8.65%
Explanation:
First find the weights of the stocks:
Total = 320,000 + 780,000 + 1,260,000 + 2,850,000
= $5,210,000
Stock A:
= 320,000 / 5,210,000
= 6.14%
Stock B:
= 780,000 / 5,210,000
= 14.97%
Stock C:
= 1,260,000 / 5,210,000
= 24.18%
Stock D:
= 2,850,000 / 5,210,000
= 54.70%
Then calculate Portfolio Beta.
Portfolio beta = (6.14% * 1.50) + (14.97% * - 0.5) + (24.18% * 1.25) + (54.72% * 0.75)
= 0.7299
Required rate of return using Capital Asset Pricing Model (CAPM)
= Risk free rate + Beta * (Market return - risk free rate)
= 5% + 0.7299 * (10% - 5%)
= 8.65%
The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $327,600. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 25,200 and 8,800 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. Round your answers to the nearest cent. $fill in the blank 1 per equivalent unit of materials $fill in the blank 2 per equivalent unit of conversion costs
Answer:
$13 per Equivalent Unit of Materials,
$60 per Equivalent Unit of Conversion Costs
Explanation:
Calculation to Determine the direct materials and conversion cost per equivalent unit
Direct materials equivalent units=($327,600/25,200 liters )
Direct materials equivalent units=$13
Conversion Costs equivalent units
=($528,000/8,800 liters)
Conversion Costs equivalent units= $60
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $155 Units in beginning inventory 200 Units produced 2,020 Units sold 1,760 Units in ending inventory 460 Variable costs per unit: Direct materials $ 49 Direct labor $ 29 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 14 Fixed costs: Fixed manufacturing overhead $18,180 Fixed selling and administrative expense $33,440 What is the total period cost for the month under variable costing
Answer:
$76,260
Explanation:
Calculation to determine the total period cost for the month under variable costing
Using this formula
Total Period cost = Variable selling and administrative cost + Fixed manufacturing overhead + Fixed selling and administrative cost
Let plug in the formula
Total Period cost = ($14 × 1,760) + $18,180 + $33,440
Total Period cost =$24,640+$18,180 + $33,440
Total Period cost =$76,260
Therefore the total period cost for the month under variable costing is $76,260
The East Asian financial crisis of the 1990s: Showed how trade partners are unreliable Made countries stop investing in China since India was experiencing an economic boom and was opening up. Forced countries in the region to import more and export less. Was not caused by financial contagion Was associated with moral hazard and fixed exchange rates
Answer:
The East Asian Financial Crisis of the 1990s:
Was associated with moral hazard and fixed exchange rates.
Explanation:
The countries which suffered adverse distress from the financial crisis were Indonesia, South Korea, and Thailand. The financial meltdown followed the collapse of the hot money bubble, whereby high interest rates and fixed foreign exchange rates were pegged to the U.S. dollars by these mostly exporting countries. The practice largely favored these Asian exporters until the bubble burst, starting from July of 1997. And the consequences and lessons now remain Economics and History topics.
At the beginning of October, Bowser Co.’s inventory consists of 58 units with a cost per unit of $42. The following transactions occur during the month of October
October 4 Purchase 122 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30.
October 5 Pay cash for freight charges related to the October 4 purchase, $749.
October 9 Return 15 defective units from the October 4 purchase and receive credit.
October 12 Pay Waluigi Co. in full.
October 15 Sell 152 units of inventory to customers on account, $12,160. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $7 per unit for freight less $1 per unit for the purchase discount, or $56 per unit.]
October 19 Receive full payment from customers related to the sale on October 15.
October 20 Purchase 92 units of inventory from Waluigi Co. for $62 per unit, terms 3/10, n/30.
October 22 Sell 92 units of inventory to customers for cash, $7,360. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.)
Required:
Assuming that Bowser Co, uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions.
Answer:
Bowser Co.
Journal Entries:
Oct. 4:
Debit Inventory $6,100
Credit Accounts Payable (Waluigi Co.) $6,100
To record the purchase of goods, terms 2/10, n/30.
Oct. 5:
Debit Freight-in Expense $749
Credit Cash $749
To record the payment of freight for Oct. 4 purchase.
Oct. 9:
Debit Accounts Payable (Waluigi Co.) $750
Credit Inventory $750
To record the goods returned on account.
Oct. 12:
Debit Accounts Payable (Waluigi Co.) $5,350
Credit Cash $5,243
Credit Cash Discounts $107
To record the payment on account.
Oct. 15:
Debit Accounts Receivable $12,160
Credit Sales Revenue $12,160
To record the sale of goods on account.
Oct. 15:
Debit Cost of goods sold $8,512
Credit Inventory $7,600
Credit Freight-in $912
To record the cost of goods sold.
Oct. 19:
Debit Cash $12,160
Credit Accounts Receivable $12,160
To record the receipt of cash on account.
Oct. 20:
Debit Inventory $5,704
Credit Accounts Payable (Waluigi Co.) $5,704
To record the purchase of goods on account.
Oct. 22:
Debit Cash $7,360
Credit Sales Revenue $7,360
To record cash sales.
Oct. 22:
Debit Cost of goods sold $5,626
Credit Inventory $5,626
To record the cost of goods sold.
Explanation:
a) Data and Analysis:
Oct. 4: Inventory $6,100 Accounts Payable (Waluigi Co.) $6,100, terms 2/10, n/30.
Oct. 5: Freight-in Expense $749 Cash $749
Oct. 9: Accounts Payable (Waluigi Co.) $750 Inventory $750
Oct. 12: Accounts Payable (Waluigi Co.) $5,350 Cash $5,243 Cash Discounts $107
Oct. 15: Accounts Receivable $12,160 Sales Revenue $12,160
Oct. 15: Cost of goods sold $8,512 Inventory $7,600 Freight-in $912
Oct. 19: Cash $12,160 Accounts Receivable $12,160
Oct. 20: Inventory $5,704 Accounts Payable (Waluigi Co.) $5,704
Oct. 22: Cash $7,360 Sales Revenue $7,360
Oct. 22: Cost of goods sold $5,626 Inventory $5,626 ($56 * 13 + $62 * 79)
In January, Prahbu purchased a new machine for use in an existing production line of his manufacturing business for $98,000. Assume that the machine is a unit of property and is not a material or supply. Prahbu pays $3,925 to install the machine, and after the machine is installed, he pays $2,250 to perform a critical test on the machine to ensure that it will operate in accordance with quality standards. On November 1, the critical test is complete, and Prahbu places the machine in service on the production line. On December 3, Prahbu pays another $5,200 to perform periodic quality control testing after the machine is placed in service. How much will Prahbu be required to capitalize as the cost of the machine
Answer:
$104,175
Explanation:
Calculation to determine How much will Prahbu be required to capitalize as the cost of the machine
Purchase price $98,000
Add Installation cost $3,925
Add Critical test cost $2,250
Machine Capitalize cost $104,175
($98,000+$3,925+$2,250)
Therefore How much will Prahbu be required to capitalize as the cost of the machine is $104,175
Four hospitals are located within a city at coordinate points P1=(10,20), P2=(14,12), P3=(8,4) and P4=(32,6). The hospitals are served by a centralized blood bank facility that is located in the city. The number of deliveries to be made each year between the blood bank facility and each hospital is estimated to be 450, 1200, 300, and 1500 respectively. If it is desired to locate the blood bank at a point that minimizes the weighted distance traveled per year, where should it be located
(i) if travel is rectilinear in the city
(ii) if travel is measured in Euclidean distance.
Answer:
The coordinates of the location of the Blood bank = ( 20.7826, 9.73913 )
Explanation:
Coordinates of the Four(4) hospitals are
P1=(10,20), P2=(14,12), P3=(8,4) and P4=(32,6)
Number of deliveries to be made each year for each hospital respectively:
450, 1200, 300, and 1500
conditions :
(i) if travel is rectilinear in the city
(ii) if travel is measured in Euclidean distance.
Determine where the Blood bank is to located to minimize weighted distance travelled each year
find the values of the below variables :
Total load of the Hospitals( ∑load ) = 450 + 1200 + 300 + 1500 = 3450
Lx = ∑x * load = ∑ 10*450 + -------- + 32*1500 = 71700
Ly = ∑y * load = ∑ 20*450 +--------- + 6*1500 = 33600
The coordinates of the Blood bank = [ ( Lx / ( ∑load ) ) , Ly / ( ∑load ) ]
=[ (71700/3450) , (33600/3450) ]
Hence The coordinates of the location of the Blood bank = ( 20.7826, 9.73913 )
Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $394,875 for real estate with land, land improvements, and a building. Land is appraised at $202,500; land improvements are appraised at $45,000; and a building is appraised at $202,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer:
Part 1
Land = $176,712
Land Improvements = $29,269
Building = $176,712
Part 2
Debit : Land $176,712
Debit : Land Improvements $29,269
Debit : Building $176,712
Credit : Cash $394,875
Explanation:
Cost allocations based on appraised values
Land = $202,500 / $452,500 x $394,875 = $176,712
Land Improvements = $45,000 / $452,500 x $394,875 = $29,269
Building = $202,500 / $452,500 x $394,875 = $176,712
Journal :
Debit the Assets with their allocated costs and credit cash
Maple Moving Company has provided you their unadjusted account balances to before year-end adjustments. The Controller has asked you to prepare the Adjusted Trial Balance and has provided you with further year end information.
Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
On December 31,2016, Maple Moving Company had the following balances before year-end adjustments :
Cash 62500
Accounts Receivable 51000
Supplies 67600
Trucks 176000
Accumulated Depreciation 17600
Accounts Payable 37500
Interest Payable -
Wages Payable -
Unearned Revenue 6600
Notes Pavable 100,000
Common Stock 66000
Retained Earnings 23400
Service Revenue 167000
Wages Expense 61000
Supplies Expense -
Depreciation Expense -
Interest Expense -
Required:
Use the unadjusted account balances above and the following year-end data to 3 determine adjusted account balances and propare an adjusted trial balance. Use the unadjusted account balances above and the following year-end data to determine adjusted account balances and prapare an adjusted trial balance.
Question Completion:
Interest owed but not yet paid: 10,800
Supplies on hand: 15,000
Truck depreciation expense 35,200
Unpaid wages earned by employees: 3,500
Unearned revenue that has been earned: 2,000
Answer:
Maple Moving Company
Trial Balance
As of December 31, 2016
Unadjusted Adjustments Adjusted
Trial Balance Trial Balance
DR. CR. DR. CR. DR. CR.
Cash 62,500 62,500
Accounts Receivable 51,000 51,000
Supplies 67,600 52,600 15,000
Trucks 176,000 176,000
Accumulated Depreciation 17,600 35,200 52,800
Accounts Payable 37,500 37,500
Interest Payable - 10,800 10,800
Wages Payable - 3,500 3,500
Unearned Revenue 6,600 2,000 4,600
Notes Payable 100,000 100,000
Common Stock 66,000 66,000
Retained Earnings 23,400 23,400
Service Revenue 167,000 2,000 169,000
Wages Expense 61,000 3,500 64,500
Supplies Expense - 52,600 52,600
Depreciation Expense - 35,200 35,200
Interest Expense - 10,800 10,800
Totals $418,100 $418,100 $104,100 $104,100 $467,600 $467,600
Explanation:
a) Unadjusted Trial Balance
As of December 31, 2016
Cash 62500
Accounts Receivable 51000
Supplies 67600
Trucks 176000
Accumulated Depreciation 17600
Accounts Payable 37500
Interest Payable -
Wages Payable -
Unearned Revenue 6600
Notes Payable 100,000
Common Stock 66000
Retained Earnings 23400
Service Revenue 167000
Wages Expense 61000
Supplies Expense -
Depreciation Expense -
Interest Expense -