Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.

Cash Receipts Cash payments
January $528,000 $473,700
February 405,000 350,700
March 470,000 536,000

According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.

Required:
Prepare monthly cash budgets for January, February, and March.

Answers

Answer 1

Answer:

Ending Cash Balance as are follows:

January = $40,000

February = $67,535

March = $40,000

Also, Loan Balance End of Month as follows:

January = $26,500

February = $0

March = $38,465

Explanation:

Note: See the attached excel file for the cash budget.

In the attached excel file, the following calculations are made:

January loan repayment = January Preliminary cash - January Interest expense - Minimum required cash balance = $94,300 - $800 - $40,000 = $53,500

February Loan repayment = January Loan Balance End of the Month = $26,500

March Additional Loan = Minimum required cash balance - March Preliminary cash balance = $40,000 - $1,535 = $38,465

From the attached excel file, we have Ending Cash Balance as follows:

January = $40,000

February = $67,535

March = $40,000

And also, Loan Balance End of Month as follows:

January = $26,500

February = $0

March = $38,465


Related Questions

The risk free rate currently have a return of 2.5% and the market risk premium is 7.83%. If a firm has a beta of 1.42, what is its cost of equity

Answers

Answer:

13.62 %

Explanation:

Cost of Equity = 2.5% + 7.83% x 1.42 = 13.62 %

Following is the stockholders’ equity section from the The Coca-Cola Company 2017 balance sheet. (All amounts in millions except par value.)

The Coca-Cola Company Shareowners' Equity December 31, 2017
Common stock-$0.25 par value; authorized-11,200 shares; issued-7,040 shares $1,760
Capital surplus 15,864
Reinvested earnings 60,430
Accumulated other comprehensive income (loss) (10,305)
Treasury stock, at cost-2,781 shares (50,677)
Equity attributable to shareowners of The Coca-Cola Company $17,072

Required:
a. Compute the number of shares outstanding.
b. At what average price were the Coca-Cola shares issued? Round answer to two decimal places.

Answers

Answer and Explanation:

a. The computation of the no of shares outstanding is shown below:

No. of shares outstanding is

= shares issued - shares held as treasury stock

= 7,040 shares - 2,781 shares

= 4,259 shares

b. The average price is

= (Common Stock value + Capital Surplus) ÷ No. of shares issued

=($1,760 + $15,864) ÷ 4259 shares

= $4.14

Chess Top uses the perpetual inventory system. On May 1st, the beginning inventory consisted of 480 units that cost $65 each. During the month, the company made two purchases: May 3rd, 720 units at $68 each May 20th, 360 units at $70 each. Chess Top also sold 800 units on May 10th , Using the LIFO method, what is the amount of cost of goods sold for themonth

Answers

Answer:

the amount of the cost of goods sold is $55,120

Explanation:

The computation of the cost of goods sold for the month is shown below:

Since 800 units were sold out of which 360 units would sold at $70 and the remaining units i.e. 440 units would be sold at $68

= 360 units × $70 + 440 units × $68

= $25,200 + $29,920

= $55,120

Hence, the amount of the cost of goods sold is $55,120

Many commodities have futures markets associated with them. A futures market is a prediction market that aggregates information based on uncertain events that may impact the market, and buyers commit to a financial contract in which they obligate themselves to purchasing a fixed quantity of the asset at a specified price on a certain date. In April, 2019, the national average price of unleaded gasoline was $2.87 per gallon. At the same time, the futures price for a June contract on unleaded gasoline was $2.07 per gallon.
A. The forecasted price in the futures market suggests that unleaded gasoline prices will_____by June of 2019.
B. If the information transmitted in this market is accurate and unbiased, then the predict____the actual price we will see in June.

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

a.

Unleaded fuel prices are expected to fall by June 2019 according to future demand forecasts.

Since the future price is less than the spot price, it would be better for long-term buyers who can wait for the price to increase because the market is currently in BACKWARDATION. This happens due to a short-term disparity in demand and supply.

b.

If the information in this sector is reliable and impartial, the expected June price will most likely be similar to the real price we will see in June.

It is reliable if the market is accurate and impartial, i.e. the market research on which knowledge flows.

The prices of goods are either integrated or expressed in such a flow of knowledge.

So, if it's unbiased and reliable, the forecast prices would be reasonably similar to the real future price.

Answer:

A. Decline

B. Close to

Explanation:

A. The prediction market for gasoline is much lower so prices would need to decline

B. Due to the information being accurate, it is safe to assume that the predicted price will we close to the actual price

Sarasota’s Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,140 from Catlin Publishers, terms 2/10, n/30. 3 Sold books on account to Garfunkle Bookstore for $1,080. The cost of the books sold was $650. 6 Received $40 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkle Bookstore. 17 Sold books on account to Bell Tower for $1,100. The cost of the merchandise sold was $780. 20 Purchased books on account for $600 from Priceless Book Publishers, terms 1/15, n/30. 24 Received payment in full from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $770. 30 Granted General Bookstore $140 credit for books returned costing $70.
Journalize the transactions for the month of June for Sarasota Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 125.53.)

Answers

Answer:

01-Jun

Dr Inventory $1,140

Cr Accounts Payable $1,140

03-Jun

Dr Accounts Receivable $1,080

Cr Sales $1,080

03-Jun

Dr Cost of goods sold $650

Cr Inventory $650

06-Jun

Dr Accounts Payable $40

Cr Inventory $40

09-Jun

Dr Accounts Payable $ 1,100

Cr Cash $ 1,078

Cr Inventory $ 22

15-Jun

Dr Cash $1,080

Cr Accounts Receivable $1,080

17-Jun

Dr Accounts Receivable $1,100

Cr Sales $1,100

17-Jun

Dr Cost of goods sold $780

Cr Inventory $780

20-Jun

Dr Inventory $600

Cr Accounts Payable $600

24-Jun

Dr Cash $ 1,078

Dr Sales Discounts $ 22

Cr Accounts Receivable $1,100

26-Jun

Dr Accounts Payable $600

Cr Cash $594

Cr Inventory $ 6

28-Jun

Dr Accounts Receivable $1,300

Cr Sales $1,300

28-Jun

Dr Cost of goods sold $770

Cr Inventory $770

30-Jun

Dr Sales Returns & Allowances $140

Cr Accounts Receivable $140

30-Jun

Dr Inventory $70

Cr Cost of goods sold $70

Explanation:

Preparation of the Journal entries for the month of June for Sarasota Warehouse using a perpetual inventory system.

Journal entries

01-Jun

Dr Inventory $1,140

Cr Accounts Payable $1,140

03-Jun

Dr Accounts Receivable $1,080

Cr Sales $1,080

03-Jun

Dr Cost of goods sold $650

Cr Inventory $650

06-Jun

Dr Accounts Payable $40

Cr Inventory $40

09-Jun

Dr Accounts Payable $ 1,100

($1,140-$40)

Cr Cash $ 1,078

($1,100-$22)

Cr Inventory $ 22

($1,100*2%)

15-Jun

Dr Cash $1,080

Cr Accounts Receivable $1,080

17-Jun

Dr Accounts Receivable $1,100

Cr Sales $1,100

17-Jun

Dr Cost of goods sold $780

Cr Inventory $780

20-Jun

Dr Inventory $600

Cr Accounts Payable $600

24-Jun

Dr Cash $ 1,078

($1,100-$22)

Dr Sales Discounts $ 22 ($1,100*2%)

Cr Accounts Receivable $1,100

26-Jun

Dr Accounts Payable $600

Cr Cash $594

($600-$6)

Cr Inventory $ 6

($600*1%)

28-Jun

Dr Accounts Receivable $1,300

Cr Sales $1,300

28-Jun

Dr Cost of goods sold $770

Cr Inventory $770

30-Jun

Dr Sales Returns & Allowances $140

Cr Accounts Receivable $140

30-Jun

Dr Inventory $70

Cr Cost of goods sold $70

How do you solve this :(!! Need a chart

Answers

Answer:

Purchases

Date              Qty               Unit Cost               Total Cost

11                     14                    $15                          $210

21                     9                    $16                          $144

Cost of Sales

Date              Qty               Unit Cost               Total Cost

14

                       14                    $15                           $210

                         6                   $16                            $96

25

                        9                    $16                           $144

                        5                    $16                            $80

Total                                                                        $530

Inventory

Qty               Unit Cost               Total Cost

9                        $16                        $144

Total                                                $144

Explanation:

LIFO method assumes that the units to arrive last, will be sold first. Also note that the perpetual Inventory method is used. This means the cost of sales and inventory value is calculated after every transaction.

So with LIFO , Cost of Sales will be calculated on recent  prices (later prices)  whilst Inventory will be valued at  earlier prices (old prices).

In 1961, NASA began admitting women into its astronaut training program. They performed well in the training but none of them ever served as astronauts because NASA changed its rules to require jet fighter experience for astronauts. Since women were not eligible to fly jet fighters, they could not qualify for space duty.

Required:
Would these women have had a claim under Title VII?

Answers

Answer:

Yes, they could make a claim due to disparate impact.

Explanation:

NASA wasn't barring females candidates directly since they were allowed into the selection process, but by requesting something that no woman could do, they were indirectly prohibiting them from becoming astronauts.

"Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day"

Answers

Answer:

hello your question has some missing parts below is the missing part

Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day.

answer :  4 Floral arrangements and 2  Floral deliveries

Explanation:

Number of hours spent on Floral arrangements = 4

number of hours spent on Deliveries = 2

The tasks where each staff have comparative advantage is a task they do better and faster when doing both tasks ( i.e. A task with a  lower opportunity cost )

For Jerome this task is ; Floral arrangements

For Anita this task is ; Deliveries

because They both  have a lower opportunity cost here

Determine How many more floral arrangements and deliveries could they produce each day

There will be an additional 4 Floral arrangements and 2 additional Floral deliveries

To determine additional Floral arrangement we will consider Jerome

= (( 4 * 60 ) / 10 )

= 24 / 6 = 4

The City of Cowling decides to construct a new library, which it estimates will cost $8.5 million. The City will finance the library with a state construction grant of $3 million; a general obligation bond issuance of $5 million; and a transfer from the General Fund of $500,000. Prepare journal entries to record the following transactions in the Capital Projects Fund. No budgetary entries other than encumbrances should be recorded.

Answers

Answer:

a. Dr Cash 500,000

Cr Transfer in from General Fund 500,000

b. Dr Cash 5,000,000

Cr Other financing source—long-term debt issued 5,000,000

c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000

d. Dr Cash 3,000,000

Cr Revenues—construction grant 3,000,000

e. Dr Budgetary fund balance reserved for encumbrances 8,300,000

Cr Encumbrances—capital project 8,300,000

Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000

Cr Construction contracts payable 7,560,000

f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000

g. Dr Retainage payable 840,000

Cr Cash 840,000

h. Dr Transfer out to Debt Service Fund 100,000

Cr Cash 100,000

Explanation:

Preparation of the journal entries to record the Capital Projects Fund

a. Dr Cash 500,000

Cr Transfer in from General Fund 500,000

b. Dr Cash 5,000,000

Cr Other financing source—long-term debt issued 5,000,000

c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000

d. Dr Cash 3,000,000

Cr Revenues—construction grant 3,000,000

e. Dr Budgetary fund balance reserved for encumbrances 8,300,000

Cr Encumbrances—capital project 8,300,000

Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000

(10%*8,400,000)

Cr Construction contracts payable 7,560,000

(8,400,000-840,000)

f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000

(8,400,000-840,000)

g. Dr Retainage payable 840,000

Cr Cash 840,000

(10%*8,400,000)

h. Dr Transfer out to Debt Service Fund 100,000

Cr Cash 100,000

Coronado Industries sells one product and uses a perpetual inventory system. The beginning inventory consisted of 79 units that cost $19 per unit. During the current month, the company purchased 483 units at $19 each. Sales during the month totaled 365 units for $44 each. What is the cost of goods sold using the LIFO method?

Answers

Answer:

the cost of goods sold under LIFO method is $6,935

Explanation:

The computation of the cost of goods sold under LIFO method is shown below:

= Sales during the month × cost per unit

= 365 units × $19

= $6,935

Hence, the cost of goods sold under LIFO method is $6,935

We simply applied the above formula

Assume the cholesterol levels in a certain population have mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured and the sample mean x is determined. What is the z-score for a sample mean x = 180?

a. –3.75

b. –2.50

c. −0.83

d. 2.50

Answers

the correct answer will be B because of the sample score

The required z-score for the given sample mean would be -0.83. which is the correct answer would be an option (C).

What is Z -score?

A Z-score is defined as the fractional representation of data point to the mean using standard deviations.

Given the mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured sample mean is 180.

To determine the Z-score for the given sample mean

⇒ z-score = (X-ц )/σ

Here,

ц = 200

σ = 24

X = 180

Substitute the values in the above formula,

⇒ z-score = (180 - 200)/24

⇒ z-score = -20 /24

⇒ z-score = -0.833

Therefore, the required z-score for the given sample mean would be -0.83.

Hence,  the correct answer would be an option (C).

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Most successful firms have a clearly defined, well-written marketing plan that specifies the marketing activities to be performed to implement, manage, and evaluate its marketing strategies.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Most successful firms have a clearly defined, well-written marketing plan that specifies the marketing activities to be performed to implement, manage, and evaluate its marketing strategies.

The typical marketing plan has multiple components which are based on information derived through environmental scanning.

Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats while the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.

This morning, you purchased a seventeen-year, 6.45% annual coupon bond with face value of $1,000 at a price of $1,030.04. Just after purchasing the bond, the yield to maturity of the bond falls to 5.50 percent and stays at that level throughout your investment period. If you sell your bond after holding it for seven years, what will be your realized rate of return

Answers

Answer:

6.73%

Explanation:

the price of the bond in seven years is:

PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43

PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20

market price = $1,071.63

using an excel spreadsheet of financial calculator, the annual rate of return:

year 0 = -1030.04

year 1 = 64.5

year 2 = 64.5

year 3 = 64.5

year 4 = 64.5

year 5 = 64.5

year 6 = 64.5

year 7 = 1136.13

IRR = 6.73%

Which of the following gives suggestions for new product and also help to market new product.
A. Existing product and services
B.federal government
C.Distribution channel
D.creativeness

Answers

Answer:

A

Explanation:

A (Existing product and services)

explain the difference between production control and production planning​

Answers

Answer:

Planning of the manufacturing process is deciding in advance what to do, how to do, when to do it and who is to do it. Controlling of the manufacturing process measures the digression of actual performance from the standard performance and takes corrective actions.

Explanation:

Several financial or economic factors are relevant to the rent-or-buy decision. From the following list, identify the financial or economic factors that should be considered when performing this analysis. Check all that apply.

a. The pride that comes from owning your own home
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions

Answers

Answer:

The financial and economic factors that should be considered when performing this analysis are:

b. Current and expected future housing prices

c. Current and expected future housing-related tax deductions

Explanation:

a) A rent-or-buy decision should be based on financial and economic factors.  There is the financial implication of making a down payment, closing costs, and maintenance expenses when one decides to own a home instead of renting an apartment.   However, for the occupant, renting provides the advantage of known monthly costs.  Some advantages of owning a house are building equity and tax benefits.  The pride that comes that comes from owning a home is not a financial and economic benefit.

The decisions of a mediator are?

Answers

Not mutually binding

A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses not to open
the new branch in China?
O A. The business would increase its marginal benefits on each
product it makes
O B. The business would lose the chance to make more money in
China.
O C. The business would have to open a new branch in a different
country
O D. The business would be able to use the money it saves on other
projects.

Answers

pretty sure that it’s B cause opportunity cost refers to sacrifice, and the other options like D and A look like they’re beneficial to the conpany.

Which of the following policies would lead to greater productivity in the printing industry? Check all that apply. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in printing Subsidizing research and development into new printing technologies Imposing a tax on printing presses

Answers

Answer:

✓Subsidizing research and development into new printing technologies

✓.Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

Explanation:

Productivity can be regarded as

ratio that exist between output volume and volume of inputs. It is a term used to describe how efficient production input is, such as capital as well as labor. It provides

efficiency of production.

As regards to printing industry, some of the policies that would lead to greater productivity in the printing industry are;

✓Subsidizing research and development into new printing technologies

✓.Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102. Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answers

Answer:

Dr Bonds payable 1,600,000

Dr Loss on redemption of bonds 36,800

    Cr Cash 1,632,000

    Cr Discount on bonds payable 4,800

Explanation:

Loss/gain on redemption  of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss

. True or False.
1. Creativity, problem-solving skills, and physical dexterity are examples of aptitudes.

2. The Occupational Outlook Handbook would be most useful for determining detailed information on various career clusters.

3. The purpose of an informational interview is to gather information about an organization or a career.

4. A seventy percent of professional locate employment positions presently available through networking and personal contacts.

Answers

Answer:

For #1 True

For #2 i think false

For #3 true

And for #4 false

Explanation:

Please let me know what the correct answers were if i answered 1-4 incorrectly but hope this helps

1. Creativity, problem-solving skills, and physical dexterity are all examples of aptitudes are true.

Creativity, problem-solving skills, and physical dexterity  are natural talents or abilities that can be developed and applied to various tasks or activities.

2. False. The Occupational Outlook Handbook (OOH) is a publication by the U.S. Bureau of Labor Statistics (BLS) that provides detailed information about various occupations, including job outlook, earnings, education requirements, and job duties.

3. True. The purpose of an informational interview is to gather information about an organization or a career. It involves having a conversation with someone who works in a field or company of interest to learn more about their experiences, insights, and advice.

4. False. The statement is grammatically incorrect and difficult to interpret accurately. However, if we assume that the intended meaning is "Seventy percent of professionals find employment positions through networking and personal contacts," then it could be considered true.

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A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell

Answers

Answer:

The bond was sold at $1,136.78.

Explanation:

Annual coupon = Bond face value * Coupon rate = $1000 * 5% = $50

Annual coupon discount factor = ((1 - (1 / (1 + r))^n) / r) .......... (1)

Where;

r = semi-annul interest rate = 4% / 2 = 2%, or 0.02

n = number of period = 20 years * Number of semiannuals in a year = 20 * 2 = 40 semi-annuals

Substituting the values into equation (1), we have:

Annual coupon discount factor = ((1-(1/(1 + 0.02))^40)/0.02) = 27.3554792407382

Present value of coupon = (Annual coupon * Annual coupon discount factor) / 2 = ($50 * 27.3554792407382) / 2 = $683.886981018455

Present value of the face value of the bond = Face value / (1 + r)^n = $1,000 / (1 + 0.02)^40 = $452.890415185236

Therefore, we have:

Price of bond = Present value of coupon + Present value of the face value of the bond = $683.886981018455 + $452.890415185236 = $1,136.77739620369

Approximating to 2 decimal places, we have:

Price of bond = $1,136.78

Therefore, the bond was sold at $1,136.78.

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $104,000 and expected direct labor hours of 13,000 for the current fiscal year. If job number 117 incurs 1,720 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for a.$104,000 b.$52,000 c.$1,720 d.$13,760

Answers

Answer:

Work in Process              13.760

 Manufacturing Overhead   13,760

Explanation:

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= 104,000 / 13,000

Predetermined manufacturing overhead rate= $8 per direct labor hour

Now, we can allocate overhead to Job 117:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 8*1,720

Allocated MOH= $13,760

Work in Process              13.760

 Manufacturing Overhead   13,760

cube root of 9 rational or irrational​

Answers

Rational
Please vote me as brainliest’n

TPW, a calendar year taxpayer, sold land with a $549,000 tax basis for $820,000 in February. The purchaser paid $89,000 cash at closing and gave TPW an interest-bearing note for the $731,000 remaining price. In August, TPW received a $60,550 payment from the purchaser consisting of a $36,550 principal payment and a $24,000 interest payment. Assume that TPW uses the installment sale method of accounting.
a. Compute the difference between TPW's book and tax income resulting from the installment sale method.
b. Is this difference favorable or unfavorable?
c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Compute the difference between TPW's book and tax income resulting from the installment sale method. (Round gross profit percentage to 2 decimal places, and intermediate calculations to the nearest whole dollar amount.)
Book/tax difference

Answers

Answer:

a. Difference between book income and tax income = $229,505.73

b. The difference between book income and tax income is favorable.

c. Deferred tax liability = $48,196.20

Explanation:

a. Compute the difference between TPW's book and tax income resulting from the installment sale method.

This can be computed as follows:

Amount realized on sale of land = Cash paid by purchaser + Value of interest- bearing note given by the purchaser = $89,000 + $731,000 = $820,000

Adjusted tax basis in land = $549,000

Book income = Amount realized on sale of land - adjusted tax basis in hand = $820,000 - $549,000 = $271,000

Gross profit percent = Book income / Amount realized on sale of land = $271,000 / $820,000 = 0.3305, or 33.05%

Cash received on sale of land = Cash paid by purchaser + Principal payment received in August = $89,000 + $36,550 = $125,550

Tax income =Cash received on sale of land * Gross profit percent = $125,550 * 33.05% = $41,494.28

Difference between book income and tax income = Book income - Tax income = $271,000 - $41,494.28 = $229,505.73

b. Is this difference favorable or unfavorable?

Since the book income greater than the tax income, this implies that the difference between book income and tax income is favorable.

c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference.

Deferred tax liability = Difference between book income and tax income * 21% = $229,505.73 * 21% = $48,196.20

Financial information is presented below: Operating Expenses $ 91100 Sales Returns and Allowances 17000 Sales Discounts 12400 Sales Revenue 320100 Cost of Goods Sold 174200 The amount of net sales on the income statement would be

Answers

Answer:

$290,700

Explanation:

The amount of net sales on the income statement is computed as shown below;

Net sales = Sales revenue - Sales discount - Sales return and allowance

Net sales = $320,100 - $12,400 - $17,000

Net sales = $290,700

Questions and answer

Answers

That was the last one , Good night

Actual sales revenue in dollars is 3.5% higher than budgeted, actual sales price is 10% lower than budgeted, actual sales volume in units is 15% higher than budgeted, actual input prices are 5% lower than budgeted, and actual input quantities per unit are 5% lower than budgeted. Characterize input price and input efficiency variances as favorable (F) or unfavorable (U):

Answers

Answer:

Input price and input efficiency variances are:

Favorable.

Explanation:

The input price is the cost of production.  When the actual cost of production (input price) is 5% lower than budgeted, it is a favorable outcome.  Similarly, when the input efficiency (that is the quantity of input) is 5% lower than budgeted, it shows a favorable outcome.  Therefore, the variances of these input elements (price and efficiency) are all together favorable.

The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Quebec, Inc. for an operating period. Units Unit Cost Total Cost Units Sold Beginning Inventory 32 $54 $1,728 Sale No. 1 10 Purchase No. 1 28 60 1,680 Sale No. 2 32 Purchase No. 2 20 57 1,140 Totals 80 $4,548 42 Assuming Quebec, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:

Answers

Answer:

Quebec, Inc.

Assuming Quebec, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:

= $2,220.

Explanation:

a) Data and Calculations:

                                  Units   Unit Cost   Total Cost    Units Sold

Beginning Inventory   32         $54            $1,728

Sale No. 1                                                                              10

Purchase No. 1           28           60               1,680

Sale No. 2                                                                            32

Purchase No. 2          20          57                 1,140

Totals                         80                            $4,548             42

Ending Inventory using FIFO periodic inventory system:

Units of ending inventory = 38 (80 - 42)

Units are from:       Units   Unit Cost   Total Cost

Purchase No. 1           18           60       $1,080

Purchase No. 2          20          57          1,140

Ending Inventory       38                    $2,220

One of the reasons we make bad decisions is because we have to rely on our perceptions.

a. True
b. False

Answers

True.
Yass I’m trying to fill up space on this so it will be 20 characters

Answer:

false??

Explanation:

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