Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.
Answers
Answer and Explanation:
The preparation of the cash flow statement is presented below:
Forten Company
Statement of Cash Flows
For Current Year Ended December 31
Cash flows from operating activities
Net Income $110,575
Adjustments made
Depreciation expense $31,750
Less: Increase in Accounts receivable -$20,755
Less: Increase in Inventory -$29,356
Add: Decrease in Prepaid expense $795
Less: Decrease in Accounts payable -$67,034
Add: Loss on disposal of equipment $16,125
Net cash provided by operating activities $42,100
Cash flows from investing activities
Less: Cash paid for equipment -$52,000
Add: Cash received from sale of equipment $22,625
Net cash used in investing activities -$29,375
Cash flows from financing activities:
Cash borrowed on short-term note $5,100
Less: Cash paid on long-term note -$55,625
Add: Cash received from issuing stock $72,000
Less: Cash paid for dividends -$52,300
Net cash used in financing activities -$30,825
Net increase (decrease) in cash -$18,100
Add: Cash balance at beginning of year $84,500
Cash balance at end of year $66,400
Related Questions
What is the modified duration of a four-year bond with annual 10% coupons and a 10% yield to maturity?
Answers
Answer:
the formula to calculate modified duration of bonds:
modified duration = [1 - (1 + y)⁻ⁿ] / y
modified duration = [1 - (1 + 10%)⁻⁴] / 10% = 0.317 / 10% = 3.17 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 3.17 years x 1.1 = 3.49 years
The modified duration shows how a bond's value can change as a result of a change in the interest rate.
Park Hyatt Philadelphia has 118 king/queen rooms that it offers to both leisure and business travelers. With leisure travelers in mind, the Hyatt offers a $125 low fare for a midweek stay, which contrasts with the regular fare of $300. The forecasted demand for business travel is normally distributed with a mean of 60 customers and standard deviation of 20 customers. Assuming that leisure travelers always reserve their rooms earlier than business travelers. To maximize the revenue, the Hyatt decides to save some rooms for business travelers. The optimal number of rooms protected should be:__________ a. <60 b. >118 c. >60 d. =60
Answers
Answer:
c. >60
Explanation:
Given that:
Overage (CO) = 125
Shortage (CS) = 300
The Service level = [tex]\dfrac{CS}{CS+CO}[/tex]
[tex]=\dfrac{300}{300+125}[/tex]
[tex]=\dfrac{300}{425}[/tex]
= 0.7059
The Z value of 0.7059 is 0.55
where;
the mean [tex]\mu[/tex] = 60
the standard deviation [tex]\sigma[/tex]= 20
Optimal booking = [tex]\mu +(Z \times \sigma)[/tex]
Optimal booking = 60 + (0.55 × 20)
Optimal booking = 60 + 11
Optimal booking = 71
Jenin recently purchased 100 shares of Tarifi's Optical common stock for $6,000. The stock is expected to provide an annual cash flow of dividends of $400 indefinitely. Assuming a discount rate of 8 percent, how does the price Jenin paid compare to the value of the stock?
Answers
Answer:
Since the present value of the perpetuity ($5,000) is less than the price that Jenin paid for the stocks ($6,000), we can conclude that she paid an excessively high price for them.
Explanation:
Jenin invested $6,000 in stocks that yield a perpetual dividend. In order to compare if Jenin made a good deal we must find the present value of the perpetuity:
present value = annual cash flow / discount rate = $400 / 8% = $5,000
Since the present value of the perpetuity is less than the price that Jenin paid for the stocks, we can conclude that she paid an excessively high price for them.
We conclude that this stock is overpriced and it was purchased at a premium.
Total number of shares Bought = 100 shares
100 shares were purchased at the rate of $6000
The rate of discount is = 8 percent = 0.08
Cash flow = 400 dollars
To get the theoretical value of these 100 shares
Value = cash flow ÷ discount
= 400 ÷ 0.08
= $5000
Therefore the 6000 dollars that was paid to get the 100 shares is more than the calculated theoretical value of 5000.. We conclude that this stock is overpriced and it was purchased at a premium.
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GSX stock is selling for $32.40 a share. A 4-month call on GSX stock with a strike price of $35 is priced at $.55. Risk-free assets are currently returning .3 percent per month. What is the price of a 4-month put on GSX stock with a strike price of $35
Answers
Answer:
$3.03
Explanation:
Calculation for What is the price of a 4-month put on GSX stock with a strike price of $35
Based on the information given we would be using put-call parity formula
S + P = C + PV(E) P
Let plug in the formula
Price=$0.55 + ($35 / 1.0034) - $32.40
Price=$0.55 + $34.88 - $32.40
Price = $3.03
Therefore the price of a 4-month put on GSX stock with a strike price of $35 will be $3.03
For a nondividend-paying stock, you are given: i) The current stock price is 40 ii) At the end of the month the stock price will be either 42 or 38 Assume that the continuously compounded risk-free interest rate is 0.08 Given that the price of a 39-strike call option with 1 month to maturity is 1.5; what strategy can you use to take advantage of the arbitrage opportunity (if any)
Answers
What is an added value???
Answers
Explanation:
The difference between the price of the finished product/service and the cost of the input involved in making it is known as an added value
The difference between the price of the finished product/service and the cost of the input involved in making it is known as an added value
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements listed has the highest priority?
Answers
Hello. You forgot to enter the answer options. The response options are:
Location
Market conditions
Conditions of sale
Physical characteristics
Answer:
Physical characteristics
Explanation:
The physical characteristics of the analyzed system, must have priority in determining the approach of comparing sales to value. This is because these characteristics have a strong influence on the composition of the product and the constancy of sales, in addition to determining the entire functioning of the system.
The one of the element that has the highest priority is Physical characteristics
The following information should be considered:
The physical characteristics of the analyzed system, must have priority in determining the approach of comparing sales to value. This is due to the characteristics that contains a strong influence on the composition of the product and the constancy of sales, in addition to measure the overall functioning of the system.Learn more: brainly.com/question/16911495
A cyclically adjusted budget balance: a. is an estimate of what the budget balance would be if real GDP were equal to potential output. b. is the same as the national debt, and it rises as interest cost is accrued. c. shows what the budget balance would be with a significant amount of cyclical unemployment. d. is a good indicator of the depreciation of the capital stock.
Answers
Answer:
a. is an estimate of what the budget balance would be if real GDP were equal to potential output.
Explanation:
A cyclically adjusted budget balance is an estimate of what the budget balance would be if real GDP were equal to potential output. A cyclical adjustment budget balance measures the stance of fiscal policy, as it removes the endogenous components of spending and revenues and its also estimate the budget balance if the economy is in the long run equilibrium.
Assume the following: The standard labor rate is $8.50 per hour. The standard quantity of labor allowed per unit is 4 hours. The company paid $342,000 for 38,000 hours of labor. The company actually produced 10,000 units of finished goods during the period. What is the labor efficiency variance
Answers
Answer: 17000F
Explanation:
The labor efficiency variance based on the information provided in the question would be calculated as:
= (Standard hours - Actual hours) × Standard rate
= (40000 - 38000) × 8.50
= 2000 × 8.50
= 17000 favourable
Note;
Standard hours = 10000 × 4 hours = 40,000 hours
is global economic resistance good or bad? why?
Answers
Answer:
The global economy can be a little frustrating because globalization and the global economy are terms that mean different things to different people. I have found that some people talk about the global economy and what they mean is the opening of markets and trade among nations—so that today you can buy products in a store that have been made everywhere around the world, and people everywhere around the world are buying products that we make.
That didn’t used to be the case, partly because transportation and communication technologies were inadequate and partly because there were a lot more political barriers and even wars going on that prevented people from trading with each other. But in the twentieth century—especially in the late twentieth century—there’s been a large-scale dismantling of political barriers to trade combined with a dramatic increase in communication and transportation technology that has opened up a new global market.
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 900 units and of Product N0 is 600 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The unit product cost of Product R3 under activity-based costing is closest to:
Answers
Answer:
$671.92
Explanation:
Note: The full question is attached as picture below
Product R3
Labor-related cost = 40736/7200*5400
Labor-related cost = $30,552
Production orders = 65970/1600*1000
Production orders = $41,231
Order size = 433175/7100*3100
Order size = $189,133
Total overhead = Labor-related cost + Production orders + Order size
Total overhead = $30,552 + $41,231 + $189,133
Total overhead = $260,916
Annual production and sales of Product of R3 = 900 u nit
Overhead cost per unit = Total overhead / Unit
Overhead cost per unit = $260,916 / 900
Overhead cost per unit = $289.92
Direct material = $226
Direct labor = (26*6) = $156
Unit product cost = Overhead cost per unit + Direct material + Direct labor
Unit product cost = $289.92 + $226 + $156
Unit product cost = $671.92.
new cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline falls and auto-workers receieve lower wages
Answers
Answer:
Going by the logic that, new cars are normal goods, it is safe to assume that, the price of those cars would fall if it were to be that the price of gasoline falls and as well as the auto-workers receive lower wages.
This is because, the relation between the two factors are directly proportional to each other. For example, if the auto-workers wage were $100 per 100 and it was subsequently reduced to $40 per hour, the overhead cost would drastically be reduced.
Explanation:
1.Make a list of at least 5 good topics for networking.
Answers
Answer:
Explanation:
Networking has so many subcategories and topics that can be discussed since there are a huge array of techniques, methods, technology, etc. Therefore I would say that 6 pretty good networking topics that would be great to discuss with other people or even create a presentation/essay on would be the following...
QoS ImplementationIP vs ATMSAN vs NASPeer-to-Peer or Base Stations?Ad-Hoc vs InfrastructureEverything over IP
On September 1, 2019, Parker, Inc. made a loan to one of its customers. The customer signed an 8-month note for $105,000 at 14%. Calculate the maturity value of the note. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answers
Answer:Maturity value =$115,000
Explanation:
Maturity value is the amount that includes the principal and accrued interest that a borrower should pay on its maturity date.
Maturity value of note = Principal + interest accrued
Interest = Principal x rate x time
=$105,000 x 14% X 8/12
=$9,800
Maturity value = $105,000 + 9,800
=$114,800
rounding up to the nearest dollar≈$115,000
Company A accounts for its investment in Company B under the equity method. Company A carried the Company B investment at $150,000 and $165,000 at December 31, 2020, and December 31, 2021, respectively. During 2021 Company B recognized $80,000 of net income and paid dividends of $30,000. Assuming that Company A owned the same percentage of Company B throughout 2021, its percentage ownership must have been:
Answers
Answer:
30%
Explanation:
Calculation for its percentage ownership
Percentage of ownership=($80,000 - $30,000)/$165,000
Percentage of ownership=$50,000/$165,000
Percentage of ownership = 30%
Therefore Assuming that Company A owned the same percentage of Company B throughout 2021, its percentage ownership must have been:30%
Brief Exercise 229 Iverson Company purchased a delivery truck for $45,000 on January 1, 2020. The truck was assigned an estimated useful life of 5 years and has a residual value of $10,000. Compute depreciation expense using the double-declining-balance method for the years 2020 and 2021.
Answers
Answer:
the depreciation expense using the double-declining-balance method for the years 2020 and 2021 is $18,000 and $10,800 respectively
Explanation:
The computation of the depreciation expense using the double declining method for the year 2020 and 2021 is as follows:
For 2020
= (Cost) × depreciation rate
= $45,000 × 1 ÷ 5 × 2
= $18,000
For 2021
= ($45,000 - $18,000) × 0.40
= $10,800
hence, the depreciation expense using the double-declining-balance method for the years 2020 and 2021 is $18,000 and $10,800 respectively
If you purchase 100 shares of XYZ Corporation for $50 per share, receive a dividend check for $200, and then sell the stock for $62 per share, what will your return on the stock be
Answers
Answer:
Your return on the stock will be 28%.
Explanation:
Po = Initial price per share = $50
P1 = New price per share = $62
S = Number shares purchased = 100
D = Dividend per share = Dividend received / Number shares purchased = $200 / 100 = $2
Therefore, we have:
Stock return = ((P1 - Po) + D) / Po = (($62 - $50) + $2) / $50 = ($12 + $2) / $50 = $14 / $50 = 0.28, or 28%
Therefore, your return on the stock will be 28%.
please help me answer this...
Answers
are considering buying a new flat TV that costs today at $4,000. The bank has offered you a loan to buy it. The loan is a 2-year loan for which you will make bi-monthly payments (at the end of every two months). The APR for the loan is 24%. How much is the bi-monthly payment?
Answers
Answer:
don't know because I can't understand the language of question
10. Parmentier Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January. The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $5,096 and a total of $87,668 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Molding Department
Answers
Answer:
$1.752 per unit
Explanation:
The computation of the cost per equivalent unit for conversion cost is as follows:
Total conversion cost for month of January
= Opening wip conversion cost + current production conversion cost
= $5,096 + $87,668
= 92,764
Now the total equivalent units is
= Units transferred out + ending wip
= 51,300 × 100% + 5,500 × 30%
= 52,950 units
Now the cost per equivalent unit is
= $92,764 ÷ 52,950 units
= $1.752 per unit
Someone offers to buy your car for four, equal annual payments, beginning 2 years from today. If you think that the present value of your car is $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept
Answers
Answer:
$3,123.13
Explanation:
we must first determine the price of our car in 1 year = $9,000 x (1 + 10%) = $9,900
this will be the present value of the ordinary annuity (4 equal annual payments)
$9,900 = annual payment x PV annuity factor
PV annuity factor, 10%, 4 periods = 3.1699
annual payment = $9,900 / 3.1699 = $3,123.13
According to the above equation, the minimum annual payment that would need to accept is $3,123.13.
What is the minimum annual payment?
Given Information:
Present value=$9,000Interest rate=10%Firstly, determine the price of our car in 1 year = $9,000 x (1 + 10%) = $9,900
Moreover, this will be the present value of the ordinary annuity (4 equal annual payments)
$9,900 = annual payment x PV annuity factor
PV annuity factor, 10%, 4 periods = 3.1699
Annual payment = $9,900 / 3.1699 = $3,123.13
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______ occurs when an employee or an applicant is treated unfairly at work or in the job hiring process due to an identity group, condition, or personal characteristic.
Answers
Answer:
Workplace discrimination.
Explanation:
Workplace discrimination is an extremely negative situation that occurs due to certain characteristics of an individual. It may occur because the individual belongs to different ethnic groups, depending on nationality, color, religion, etc.
This situation is harmful to the organization as a whole, the discriminated individual is the one who suffers the most for having their equality rights violated and for feeling coerced and disrespected in a work environment that should be supported by criteria of equality, ethics and collaboration .
It is necessary for companies to be aware of possible loopholes in their policies that may corroborate with such illegal acts, revising them whenever necessary and strengthening the values of respect for personal individualities and equality among employees.
Your portfolio is 310 shares of Callahan, Inc. The stock currently sells for $101 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of April 19. Assuming no taxes, what is your portfolio value as of April 19?
Answers
Answer: $30,318
Explanation:
On the day the dividend is announced, the price of the stock usually goes down by the amount of dividend announced.
Price on April 19 = 101 - 3.20 = $97.80
Portfolio value = 97.80 * 310 shares
= $30,318
Allowance for Doubtful Accounts has a credit balance of $463 at the end of the year (before adjustment), and bad debt expense is
estimated at 2% of sales. If credit sales are $552,500, the amount of the adjusting entry to record the estimated uncollectible accounts
receivable is
a. $11,050
b. $10,587
c. $11,513
d. $463
Answers
Answer:
I really need help can you guys please go to my page and answer them!:)
Explanation:
Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $7.50 per unit. A transfer price of $8.50 per unit is negotiated and 30,000 units of material are transferred from Division A to Division C, with no reduction in Division A's current sales. How much would Jefferson's total income from operations increase
Answers
Answer:
$75,000
Explanation:
Since both divisions are part of Jefferson Company, intercompany sales cannot yield a profit once the balance sheet is consolidated. In this case, Jefferson Company is saving $10 - $7.50 = $2.50 per unit and since it needed 30,000 units, it saved a total of $2.50 x 30,000 = $75,000. Whenever you save money, your profits will increase by the same amount.
Hardwoods, a timber supplying company, contracted with a furniture manufacturer, Taylor Furniture. Hardwoods owned a large plot of land where it grew oak and beech trees. Taylor had contracted with Hardwoods to buy one ton of each type of lumber grown by Hardwoods each month at a discounted price for the next five years. However, during the second year of the contract, and tornado Hardwoods farmland, and demolished its entire supply of wood. Taylor having no other supplier sued Hardwoods for breach of contract. Hardwoods argued that their contract had been legally discharged as soon as the tornado struck because at that point it was impossible for Hardwoods to supply lumber to Taylor. The court ruled in favor of Hardwoods. But what if the facts of the case were different
Answers
Answer:
the options are missing, so I looked for a similar question:
Instead of a tornado’s striking Hardwoods’ land, the state in which Hardwoods operates passes a law making it illegal for any lumber companies to cut down trees for the purposes of selling their wood. This environmental measure causes Hardwoods to go out of business. Instead of demanding Oak and Beech wood grown specifically on Hardwoods’ land, Taylor requests shipments of Oak and Beech wood from Hardwoods, and specifies in the contract that if Hardwoods cannot supply the wood, then Hardwoods should obtain the requested wood from another lumber supplier. Instead of a tornado’s striking Hardwoods’ tree farm, a wildfire burns all of Hardwoods’ trees. After the tornado, Hardwoods and Taylor Furniture agree to a novation, whereby a competing company, Oakempire, assumes the duties of Hardwoods stated in the original contract.
The answers are:
2. Instead of demanding Oak and Beech wood grown specifically on Hardwoods’ land, Taylor requests shipments of Oak and Beech wood from Hardwoods, and specifies in the contract that if Hardwoods cannot supply the wood, then Hardwoods should obtain the requested wood from another lumber supplier.
4. After the tornado, Hardwoods and Taylor Furniture agree to a novation, whereby a competing company, Oakempire, assumes the duties of Hardwoods stated in the original contract.
Explanation:
In common law, a tornado or any other type of natural disaster is considered an Act of God. A company cannot be held liable for such events, and if a contract is breached because of it, there is no legal responsibility (option 3 is another type of Act of God)
Also, if the law or existing regulation changes, and that change makes it impossible for a party to fulfill their obligations, they are not liable for breaching the contract (option 1).
ABC Company on Jan 1, 2021 purchased a delivery van for $24,000. To complete the purchase, the company also incurred a $800 shipping cost and $1,200 sales tax. The company estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 100,000 miles. Actual miles driven each year were 20,000 miles in year 1; 25,000 miles in year 2; 44,000 miles in year 3; and 55,000 miles in year 4. Required: Using Straight-line depreciation method, what is the annual depreciation expense
Answers
Answer:
the yearly depreciation expense is $5,500
Explanation:
The computation of the yearly depreciation expense using the straight line method is as follows;
= (Purchase cost - salvage value) ÷ (estimated useful life)
= ($24,000 + $800 + $1,200 - $4,000) ÷ (4 years)
= ($26,000 - $4,000) ÷ (4 years)
= $22,000 ÷ 4 years
= $5,500
hence, the yearly depreciation expense is $5,500
Lemming makes an $18,750, 120-day, 8% cash loan to Notions Co. on November 1. Lemming's end-of-period adjusting entry on December 31 should be:_______
a. Debit Cash for $250 credit Notes Receivable $250.
b. Debit Interest Revenue $500; credit Notes Receivable $500.
c. Debit Interest Receivable $250, credit Interest Revenue $250.
d. Debit interest Receivable $500, credit Interest Revenue $500.
e. Debit Notes Receivable $500, credit Interest Revenue $500
Answers
Answer:
The correct option is c. Debit Interest Receivable $250, credit Interest Revenue $250.
Explanation:
The interest revenue from this loan can be calculated as follows:
Interest revenue = Loan amount * (Number of days from November 1 to December 31 / Number of days in a year) * Interest rate .............. (1)
Where;
Interest revenue = ?
Loan amount = $18,750
Number of days from November 1 to December 31 = 60
Number of days in a year = 350
Interest rate = 8%
Substituting the values into equation (1), we have:
Interest revenue = $18,750 * (60 / 360) * 8%
Interest revenue = 250
Since it is a 120-day loan which implies that repayment is expected to be made after December 31, i.e. on 120th day, Lemming's end-of-period adjusting entry on December 31 should be Debit Interest Receivable for $250; and Credit Interest Revenue $250.
Therefore, the correct option is c. Debit Interest Receivable $250, credit Interest Revenue $250.
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000.The fair value of Float Is net assets was $1,850,000, and the book value was $1,500,000.The non controlling interest shares of Float Corp. are not actively traded. What is the total amount of goodwill recognized at the date of acquisition
Answers
Answer:
150,000
Explanation:
Answer:
$150,000
Explanation:
Calculation for the total amount of goodwill recognized at the date of acquisition
First step is to calculate the Cost(PP)
Cost(PP) =$1,600,000/.8
Cost(PP)= $2,000,000
Second step is to calculate the goodwill
to be recognized
Goodwill=$2,000,000- $1,850,000
Goodwill= 150,000
Therefore the total amount of goodwill recognized at the date of acquisition is $150,000
When the overall market experiences a decline of 8%, an investor with a portfolio of defensive stocks will probably experience:
Answers
Answer:
losses greater than 8%
Explanation:
In a situation Where all the market experiences a reduction of 8% it means that investors that has a portfolio of defensive stocks will likely experience losses that are greater than 8% reason been that DEFENSIVE STOCK give continuous dividend.
Secondly DEFENSIVE STOCK earning are constant because they don't fluctuate despite the state of stock market.