Financial assets include, among other things, cash, investments in shares, securities, mutual funds, plus bank deposits.
Why Do We Possess Financial Resources?A financial asset, referred to as a liquid asset, is worth what it is claimed to be legally or under the terms of a contract. Money held in the form of deposit accounts, stocks, bonds, and mutual funds are examples of financial assets.
Intangible assets known as financial assets are often referred to as financial instruments or securities. They are often used to fund the ownership of tangible assets like machinery and real estate.
Is it a property for investment?Financial assets are liquid assets with a market value derived from a legal right to or ownership of an underlying asset. Examples of such liquid assets are bank deposits and stock equities. In general, an asset is everything you own that has worth. Particularly, financial assets are any possessions whose value is based on a contract or other claim.
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Coronado Co. reports the following information for 2020: sales revenue $767,500, cost of goods sold $505,000, operating expenses $84,800, and an unrealized holding loss on available-for-sale debt securities for 2020 of $52,000. It declared and paid a cash dividend of $12,650 in 2020. Coronado Co. has January 1, 2020, balances in common stock $360,700; accumulated other comprehensive income $86,400; and retained earnings $91,890. It issued no stock during 2020. (Ignore income taxes.)
Required:
Prepare a statement of stockholders' equity.
Answer and Explanation:
The preparation of the statement of stockholder equity is presented below:
The net income could be find out by applying the following formula
= Sales - cost of goods sold - operating expenses
The statement of stockholder equity is a collection of common stock, retained earnings, comprehensive income and other comprehensive income
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated January 1, on January 1, 2018. Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds, management elected to account for them under the fair value option. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $201 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $210 million.
Required:
a. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2018.
b. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2018.
c. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2018.
Answer:
January 1, 2018
Dr Investment in bonds 220,000,000
Cr Cash 201,000,000
Cr Discount on investment in bonds 19,000,000
June 30, 2021
Dr Cash 8,800,000
Dr Discount on investment in bonds 1,250,000
Cr Interest revenue 10,050,000
December 31, 2018
Dr Cash 8,800,000
Dr Discount on investment in bonds 1,312,500
Cr Interest revenue 10,112,500
discount amortization = ($201,000,000 x 5%) - $8,800,000 = $1,250,000
discount amortization = ($202,250,000 x 5%) - $8,800,000 = $1,312,500
Which of the following is a reason companies are hiring temporary workers more often than in the past?
A- Temporary employees work harder than permanent employees.
B- Temporary workers are more loyal to the company, thereby making them more productive.
C- Most companies provide temporary workers with very few, if any, benefits.
D- Workers seeking temporary employment are better educated than those seeking permanent employment
At year-end, salaries expense of $17,000 has been incurred by the company but is not yet paid to employees. Salaries payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2
b. At its December 31 year-end, the company owes $325 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
c. At its December 31 year-end, the company holds a mortgage payable that has incurred $950 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Answer:
Following are the responses to the given points:
Explanation:
For part A:
Payable Salary
for point 1 $0 $19,500
for point 2 $17,000 Cr $21,800
$41,300
for point 3 Accounts title Dr. Cr.
Salaries expense $17,000
Payable Salary $17,000
For part A: Payable Interest
for point 1 $0 $0
for point 2 $325 Cr. $325
$325
for point 3 Accounts title Dr. Cr.
Interest on Expense $325
Payable Interest $325
For part C: Payable Interest
for point 1 $0 $0
for point 2 $950 Cr. $950
$950
for point 3 Accounts title Dr. Cr.
Interest on Expense $950
Payable Interest $950
Stewart owns a home with a replacement cost of $300,000. He purchased $200,000 of property insurance on the house with a $1,000 deductible for all losses. The house caught on fire and sustained $100,000 worth of damage. The actual cash value (ACV) of the damaged portion of the property was $80,000. How much will Stewart receive as reimbursement for the loss
Answer:
$82,333
Explanation:
The computation of the amount received as reimbursement for the loss is given below:
Given that
House Replacement= $300,000
80% of replacement cost = 80% of $300,000 = $240,000
Value of insurance = $200,000
Now
Amount of claim = [($200,000 ÷ $240,000) × $100,000] - $1,000 (deductible for all losses)
= $83,333 - $1,000
= $82,333
The following information is related to Nash Company for 2020.
Retained earnings balance, January 1, 2020 $901,600
Sales Revenue 23,000,000
Cost of goods sold 14,720,000
Interest revenue 64,400
Selling and administrative expenses 4,324,000
Write-off of goodwill 754,400
Income taxes for 2020 1,144,480
Gain on the sale of investments 101,200
Loss due to flood damage 358,800
Loss on the disposition of the wholesale division (net of tax) 404,800
Loss on operations of the wholesale division (net of tax) 82,800
Dividends declared on common stock 230,000
Dividends declared on preferred stock 73,600
Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)
Answer:
Nash Company
Multi-step Income Statement
For the year ended December 31, 2020:
Sales Revenue $23,000,000
Cost of goods sold 14,720,000
Gross income $8,280,000
Operating Expenses:
Selling and administrative expenses 4,324,000
Loss due to flood damage 358,800
Write-off of goodwill 754,400
Total operating expenses $5,437,200
Operating income $2,842,800
Interest revenue 64,400
Gain on the sale of investments 101,200
Income before taxes $3,008,400
Income taxes for 2020 1,144,480
Income after taxes $1,863,920
Loss on the disposition of
the wholesale division (net of tax) 404,800
Loss on operations of the
wholesale division (net of tax) 82,800
Net Comprehensive Income $1,376,320
Dividends declared: preferred stock 73,600
Earnings available to equity holders 1,302,720
Retained earnings 1/1/2020 901,600
Dividends declared: common stock 230,000
Retained earnings, 12/31/2020 $1,974,320
Explanation:
Nash's multi-step income statement has separate sections for operating income and other incomes before net comprehensive income. This last income is the point at which dividends are paid out to preferred stockholders before the retained earnings beginning balance are added, and then dividends are paid to the common stock.
Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2014, Tyler entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,500 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $9,800. In addition, Walleye agrees to pay an additional $20,600 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
1. Prepare the journal entries for Tyler in 2014 and 2015 related to this service contract. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2014
Dec 31, 2014
Jan 1, 2015
Dec 31, 2015
2. Prepare the journal entries for Tyler in 2016 related to the modified service contract, assuming a prospective approach. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 206
3. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 2016
Answer:
Tyler Financial Services
1. Journal Entries:
January 1, 2014:
Debit Cash $10,500
Unearned Service Revenue $10,500
To record cash collected for unearned services.
December 31, 2014:
Debit Unearned Service Revenue $10,500
Credit Service Revenue $10,500
To record the earned service revenue for the year.
January 1, 2015:
Debit Cash $10,500
Unearned Service Revenue $10,500
To record cash collected for unearned services.
December 31, 2015:
Debit Unearned Service Revenue $10,500
Credit Service Revenue $10,500
To record the earned service revenue for the year.
2. Journal Entries:
January 1, 2016:
Debit Cash $30,400
Unearned Service Revenue $30,400
To record cash collected for unearned services.
December 31, 2016:
Debit Unearned Service Revenue $9,800
Credit Service Revenue $9,800
To record the earned service revenue for the year.
Explanation:
a) Data and Calculations:
Annual contract fee = $10,500 in 2014 and 2015
Modified contract fee = $9,800 in 2016
Additional fee from year 3 = $20,600 for 3 more years ($6,867 each year) from 2017 to 2019
b) Cash received ($30,400) on January 1, 2016 includes the $9,800 for 2016 and the $20,600 for the years 2017 to 2019.
Tullius Corporation has received a request for a special order of 8,600 units of product C64 for $45.50 each. The normal selling price of this product is $50.60 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows:
Direct materials $ 16.30
Direct labor 5.60
Variable manufacturing overhead 2.80
Fixed manufacturing overhead 5.70
Unit product cost $ 30.40
Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.20 per unit and that would require a one-time investment of $45,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.
Required: Determine the effect on the company's total net operating income of accepting the special order.
Answer:
Increase in Netcome$89,160
Explanation:
Calculation to Determine the effect on the company's total net operating income of accepting the special order.
Effect on the company's total net operating income of accepting the special order=(8,600units*$45.50)-[8,600units*($ 16.30+5.60+2.80+$5.20)]-$45,000
Effect on the company's total net operating income of accepting the special order=$391,300-$257,140-$45,000
Effect on the company's total net operating income of accepting the special order=$89,160 Increase
Therefore the effect on the company's total net operating income of accepting the special order will be increase in net income of the amount of $89,160
FORco, a country F corporation, wants to open a sales office in the United States. FORco does not form a U.S. subsidiary, but instead operates in the U.S. as a branch. Country F does not have a income tax treaty with the U.S. If FORco loans operating funds to the U.S. branch, when the U.S. branch makes interest payment to FORco, the interest payment will be subject to:____.
Answer:
C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules.
Explanation:
Options are "A. No interest withholding as the interest is deemed paid by the foreign corporation, since the U.S. branch is not a U.S. corporation. B. No interest withholding tax since the recipient of the interest is a foreign corporation. C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules. D. Subject to 15% withholding tax under the Branch Profits tax rules. Reset Selection"
The interest payment will be subject to 30% withholding tax under the Branch Interest Withholding tax rules. Interest paid by a branch's U.S. trade or business, is considered U.S. source income and is subject to U.S. withholding tax at a rate of 30%, unless the tax is reduced or eliminated by a specific treaty or Code provision.
On October 21, 2004, Abitibi-Consolidated Inc., a large Canadian-based newsprint and groundwood producer, reported net income for its third quarter, 2004, of $182 million. This compares with a net loss for the same quarter of 2003 of $70 million. Sales for the quarter were up, to $1528 million, and earnings excluding low persistence items, was a loss of $27 million. the low - persistence items included a gain of $239 million before tax from foreign exchange conversion. Much of the company's long term debt is denominated in US dollars. The foreign exchange gain arose because of the rising value of the Canadian dollar, relative to the US dollar, during the quarter. Comparable figures for the third quarter of 2003 were as follows: sales of $ 1,340 mil-lion, a loss before low- persistence items of $ 32 million, and foreign exchange conversion gain of $ 13 million. There is no mention of R& D costs in the company’s third quarter report. Its 2003 annual report mentions R& D only in passing, with reference to forest conservation. Presumably, R& D expenditures are relatively low. Abitibi- Consolidated’s share price rose $ 0.59 to $ 7.29 on the Toronto Stock Exchange on October 21, 2004. The S& P/ TSX Composite index gained 59 points to close at 8,847 on the same day. According to media reports, the increases were driven by a "red- hot" materials and energy sect
Solution :
The unexpected earnings is the term used to address the difference between the actual earning of the company for a period as well as the expected earnings for the period. The financial analyst make a mathematical as well as a financial models of the company earnings from the other accounting periods. The unexpected aspect of the earnings also means the price of the stock that can price up of fall dramatically over the course of the day.
Here,
For Q3 2004 2003
Net reported income 82M (70M)
Expected earnings (27M)
Unexpected earnings 55M
Thus we consider the earnings excluding the low persistence items. The low persistence items do not included the sinte there is no continuity or durability of the earnings currently, as they can vary on the large scale.
Also we are given company beta was 0.779 which indicates less volatility. Even though the stock price went up from 0.59 to 0.79, the difference can be considered as the unexpected earnings.
i.e. [tex]$7.29 - 0.59 =6.7 $[/tex] increase per share.
Which of the statements is the best description of inflation? The prices of only consumer goods are increasing. The price of all goods and services have increased proportionately. The price of all goods and services in the economy are increasing. Real GDP is rising. An increase in the overall price level has occurred.
Answer:
An increase in the overall price level has occurred.
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Mathematically, inflation is given by the formula;
Inflation = Nominal interest - Real interest rate
Hence, the best description of inflation is an increase in the overall price level has occurred.
Additionally, economics can be classified into two (2) main categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. Simply stated, it focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Hence, macroeconomic is a kind of externalities that affects the levels of unemployment, inflation, or growth in the economy as a whole.
Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 4.5% per year compounded yearly.
End of Year Series 1 Series 2
0 $300 $0
1 $350 $0
2 $400 $35X
3 $450 $25X
4 $0 $15X
5 $0 $5X
Answer:
14.90
Explanation:
The computation of the value of X is shown below;
End of Year Series 1 Series 2 series 1 series 2
0 $300 $0 1 $300 $0
1 $350 $0 1.045 $366 $0
2 $400 $35X 1.092025 $437 38.15X
3 $450 $25X 1.141166 $514 35.25X
4 $0 $15X 1.192519 $0 28.8X
5 $0 $5X 1.246182 $0 6.2X
$1,616 108.4X
Now
108.4X = $1,616
x = $1,616 ÷ 108.4
= 14.90
Melissa is conducting a survey of our classmates because our teacher wants the class to learn more about hygiene habits Melissa House develop a list of 10 questions
Garcia Company issues 8.50%, 15-year bonds with a par value of $390,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12.50%, which implies a selling price of 79. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 79, what are the issuer's cash proceeds from issuance of these bonds.
Answer:
$308,100
Explanation:
Calculation for what are the issuer's cash proceeds from issuance of these bonds
Using this formulaIssuer's cash proceeds from issuance of bonds=Fave value*Implies a selling price percentage
Let plug in the formula
Issuer's cash proceeds from issuance of bonds=$390,000*79/100
Issuer's cash proceeds from issuance of bond=$308,100
Therefore the issuer's cash proceeds from issuance of these bonds will have be $308,100
True or False?
a. Financing for public corporations must flow through financial markets.
b. Financing for private corporations must flow through financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
d. Derivative markets are a major source of finance for many corporations.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
Answer:
a. Financing for public corporations must flow through financial markets.
FALSE, it can flow through financial markets or financial intermediaries.
b. Financing for private corporations must flow through financial intermediaries.
FALSE, it can flow through financial markets or financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
FALSE, they are traded in many different markets around the world.
d. Derivative markets are a major source of finance for many corporations.
FALSE, the major source of financing for corporations are stock markets.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
a. False: Financing for public corporations must flow through financial markets.
b. False: Financing for private corporations must flow through financial intermediaries.
c. False: Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
d. False: Derivative markets are a major source of finance for many corporations.
e. False: The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
f. False: The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
Financing is a process through which funds are provided for business activities (operating), making purchases, or investing in other areas.
Generally, financial institutions such as banks, are saddled with the responsibility of providing capital (funds) to businesses, investors, creditors and consumers, in order to help them achieve their goals.
a. False: Financing for public corporations must flow through financial markets.
Financing for public corporations can either flow through financial markets or financial intermediaries.b. False: Financing for private corporations must flow through financial intermediaries.
Financing for private corporations can either flow through financial markets or financial intermediaries.c. False: Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
The floors of the FOREX exchanges in New York and London is mainly for trading non-volatile foreign exchange such as Dollar, Euros, etc.d. False: Derivative markets are a major source of finance for many corporations.
The stock market is a major source of financing for corporations.e. False: The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
The opportunity cost of capital is the increased return on investment that a business firm looses by using its capital (funds) for an alternative investment.f. False: The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
It is the cost of a business firm's debt and equity or rate of return on a portfolio from an investor's perspective.Read more on financing here: https://brainly.com/question/15455243
It is estimated that the annual sales of an energy saving device will be 20,000 the first year and increase by 10,000 per year unitl 50,000 units are sold during the fourth year. Proposal A is to purchase manufacturing equipment costing $120,000 with an estimated salvage value of $15,000 at the end of 4 years.Proposal B is to purchase equipment costing $280,000 with an estimated salvage value of $32,000 at the end of 4 years. The variable manufacturing cost per unit under proposal A is estimated to be $8,00, but is estimated to be only $2.60 under proposal B. If the interest rate is 9%, which proposal should be accepted for a 4-year production horizon?
Answer:
Proposal B should be accepted
Explanation:
1 2 3 4
Sales(Units) 20,000 30,000 40,000 50,000
Variable Cost (A) 160,000 240,000 320,000 400,000- 15,000
Variable Cost (B) 52,000 78,000 104,000 130,000 - 32,000
PV Factor(9%) 0.917 0.841 0.772 0.708
PV OF Variable Cost(A) 146,720 201,840 247,040 272,580
PV of Variable Cost(B) 47,684 65,598 80,288 69,384
Total PV of Variable Cost of A: $868,180
Total PV of Variable Cost of B: $262,954
Difference in PV of Expenses= $605,226
Difference in PV of Outflow = 280,000 - 120,000 = $160,000
So, Proposal B should be accepted because it has a cost saving of Net $445,226 (605,226 - 160,000).
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio Consider the following case: Crawford Construction has a quick ratio of 2.00x, $36,225 in cash, $20,125 in accounts receivable, some inventory, total current assets of $80,500, and total current liabilities of $28,175. The company reported annual sales of $100,000 in the most recent annual report. Over the past year, how often did Crawford Construction sell and replace its inventory? O 4.14 x 4.55 x 2.86x 8.01 x The inventory turnover ratio across companies in the construction industry is 4.55x. Based on this information, which of the following statements is true for Crawford Construction? O Crawford Construction is holding less inventory per dollar of sales compared to the industry average O Crawford Construction is holding more inventory per dollar of sales compared to the industry average You are analyzing two companies that manufacture electronic toys-Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $255,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You've collected data from the companies' financial statements. This information is listed as follows: Data Collected (in dollars) Accounts receivable Net fixed assets Total assets Like Games 2,700 55,000 95,000 Our Play 3,900 80,000 125,000 Industry Average 3,850 216,750 234,600 Using this information, complete the following statements to include in your analysis days of sales tied up in receivables, which is much than the industry average. It takes Our Play 1. Our Play has time to collect cash from its customers than it takes Like Games. more than that of Our Play. This is because Like Games was formed eight years ago, so the 2. Like Games's fixed assets turnover ratio is acquisition cost of its fixed assets is recorded at historic values when the company bought its assets and has been depreciated since then Assuming that fixed assets prices (not book values) rose over the past six years due to inflation, Our Play paid a assets. amount for its fixed 3. The average total assets turnover in the electronic toys industry is 1.09x, which means that $1.09 of sales is being generated with every dollar of investment in assets. A are total assets turnover ratio indicates greater efficiency. Both companies' total assets turnover ratios than the industry average
Answer:
1. 4.14X
for the other parts of this question, i had to solve for the solution and fill it into the blank parts of the question.
Explanation:
part 1 solution:
annual sales - cash + account receivable
= 80500 - (36225 + 20125)
= 80500 - 56350
inventories = 24150
inventory turnover ratio = 100000/24150
= 4.14X
what is true for crawford is that crawford construction is holding more inventories per dollar compared to the industry average. we compared 4.14x with 4.55x to arrive at this conclusion.
part 2 solution:
Days sales outstanding = account receivable / average sales per day
like games = 2700/(100000/365)
= 9.855
our play = 3900/(100000/365)
= 14.235
industry average = 3850/(255000/365)
= 5.5
these values would be used to fill in this part of the question
our play has 14.235 days of sales which is much more than industry average. it is obvious that 14.235 is much greater than 5.5. It takes our play more time to time to collect colect cash from its customers than like games. this is as our play has 14.235 days and like games has 9.855 days.
fixed asset turn over ratio = sales/ net fixed assets
like games = 100000/55000
= 1.81X
our play = 100000/80000
= 1.25X
like games has fixed asset that is higher than that of our play. from the calculation above, 1.81X is greater than 1.25X. This is as like games was created 8 years ago.
Our Play paid a higher amount for its fixed assets.
part 3 solution;
total assets turn over ratio = sales / total assets
for industry average = 225000/234600 = 1.09X
for like games = 100000/95000 = 1.05X
For our play = 100000/125000 = 0.8X
A higher turn over ratio shows greater efficiency. Both companies have lower total turnover than the industry average. we can see obviously that 1.09X is greater than 1.05X and 0.8X.
thank you!
Most interest-paying checking accounts exhibit characteristics of both checking and savings accounts. Specifically, they earn relatively high rates of interest, especially compared with regular savings accounts, and allow relatively limited check-writing privileges. They are available through depository and nondepository institutions, including commercial banks, savings banks, credit unions, stock brokerage firms, mutual funds, and other financial services companies. What are some of the important characteristics of the following four major types of interest-paying checking accounts?
a. AMA: Asset Management Accounts
b. MMDA: Money Market Deposit Accounts
c. MMMF: Money Market Mutual Funds
d. NOW: Negotiable order of Withdrawal
Answer:
Some of the important characteristics are explained below:
a. AMA (Assets management accounts):
This account offers a various service to the account holders such as verifying the accounts, debit or credit card facilities, transfers of money between the accounts of account holders and provides facility of lower interest rate on loan.
b. MMDA (Money market deposit accounts):
This is a saving account which helps to the account holders in earning higher rate of annual yield as compared to the traditional savings account. This account needs a higher minimum balance in accounts of the accounts holder as compared to the standard savings bank account.
c. MMMF (Money market mutual funds):
This is a account which facilitates to the individual to invest their money in debt or securities for a short term period and they can be withdrawal their money when they require or needs the money.
d. NOW (Negotiable order of withdrawal):
This is the interest earnings account which facilitates to the account holders in making the drafts in against of the money which they deposit with their respective banks.
How do financial institutions contribute to the development of a market economy?
A.
They collect sales tax on goods and services for local and state governments.
B.
They impose and collect tariffs on products imported from other countries.
C.
They prevent businesses and people from overspending when prices are high.
D.
They provide loans so that businesses and people can buy goods and services.
Answer:
Option D
Explanation:
I just used this on my test and got it correct
The state of Oregon's wine industry specializes in the production of Pinot Noir wine, a type of red wine. Oregon's Pinot Noir is very similar to wines made in Santa Barbara and the Burgundy region of France. Oregon's Pinot Noir is also known to pair well with lamb, that is, many people choose to drink Pinot Noir while eating lamb.
For many years, states levy a special sales tax on wine often called a "sin tax". The reasoning behind these special sales taxes is that wine consumption can lead to particular social costs such as drunk driving, violence, etc.
However, many medical studies have demonstrated that moderate consumption of red wine can lower the risks for many diseases such as coronary heart disease. Thus, there are social benefits as well.
Suppose that states, in recognition of some of the benefits to wine consumption, decide to decrease the sales tax on Oregon Pinot Noir. What effect will this have on consumer surplus, producer surplus and deadweight loss.
A. Consumer surplus increases, producer surplus increases, the deadweight loss decreases.
B. Consumer surplus decreases, producer surplus decreases, the deadweight loss decreases.
C. Consumer surplus decreases, producer surplus increases, the deadweight loss is unchanged.
D. Consumer surplus increases, producer surplus increases, the deadweight loss increases.
Answer:
A. Consumer surplus increases, producer surplus increases, the deadweight loss decreases.
Explanation:
The burden of taxes is shared by both producers and consumers, regardless of who is supposed to pay for it. By decreasing taxes, both producers and consumers will benefit, resulting in higher producer and supplier surplus. Since surplus increases, that means that the deadweight loss resulting from the tax must be decreasing.
If the state decides to decrease the sales tax on Oregon Pinot Noir, the effect it will have on consumer surplus, producer surplus and deadweight loss is : Consumer surplus increases, producer surplus increases, the deadweight loss decreases.
What is tax?Tax is a compulsory levy, levied individual or entities by governments. They are a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes and properties.
With regards to the above, the burden of taxes are shared by both producers and consumers, regardless of who is supposed to pay for it.
When taxes are decreased, both producers and consumers will benefit, hence bring about higher producer and supplier surplus. Since surplus increases, that means that the deadweight loss resulting from the tax must be decreasing.
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Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $525 100 Variable costs 300 57 Unit contribution margin $225 43 Assume that Staley Co. is currently selling 500 computer monitors per month and monthly fixed costs are $75,000. Staley Co.'s margin of safety ratio (MOS%) if 500 units are sold would be (round intermediate calculation up to nearest whole number of units): Group of answer choices 33.2%. 20.5%. 17.7%. 19.5%. 23.7%.
Answer:
36%
Explanation:
Calculation for what Staley Co.'s margin of safety ratio (MOS%) if 500 units are sold would be
First step is to calculate the Break even point units using this formula
Break even point units =( Fixed cost / Contribution margin per unit)
Let plug in the formula
Break even point units= ($75,000 / $225)
Break even point units= 320 units
Second step is to calculate the Margin of safety sales in units using this formula
Margin of safety sales in units = Actual sales units - Break even sales units
Let plug in the formula
Margin of safety sales in units = 500 - 320
Margin of safety sales in units= 180
Now let calculate Margin of safety ratio using this formula
Margin of safety ratio = ( margin of safety units / Actual sales units) *100
Let plug in the formula
Margin of safety ratio= (180 / 500 ) *100
Margin of safety ratio= 36%
Therefore Staley Co.'s margin of safety ratio (MOS%) if 500 units are sold would be 36%
Question
Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2014 as follows.
Income (Loss) Tax Rate
2006 $29,000 30 %
2007 40,000 30 %
2008 17,000 35 %
2009 48,000 50 %
2010 (150,000 ) 40 %
2011 90,000 40 %
2012 30,000 40 %
2013 105,000 40 %
2014 (60,000) 45 %
Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
a) What entries for income taxes should be recorded for 2010? .
b) Indicate what the income tax expense portion of the income statement for 2010 should look like. Assume all income (loss) relates to continuing operations.
c)What entry for income taxes should be recorded in 2011?
d) How should the income tax expense section of the income statement for 2011 appear?
e) what entry for income taxes should be recorded in 2014
f) how should the income tax expense section of the statement for 2104 appear to be ?
?
Answer:
A. Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
B. Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
C.Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
D. Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
E. Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
F. Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
Explanation:
A. Calculation for what the entries for income taxes should be recorded for 2010
Entries for Income tax for 2010
Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
2010 (150,000 *40 %)
(To record timing difference of carry forward losses)
b) Indication for what the income tax expense portion of the income statement for 2010 should look like. :
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
c) Calculation for what the entries for income taxes should be recorded for 2011
Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
2011 (90,000* 40 %)
(To record deferred tax asset utilization)
d) Income tax expense section of the income statement for 2011 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
e) Calculation for what the entries for income taxes should be recorded for 2014
Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
2014 (60,000*45 %)
(To record deferred tax asset utilization)
f) Income tax expense section of the income statement for 2014 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
For the current year, Power Cords Corp. expected to sell 42,100 industrial power cords. Fixed costs were expected to total $1,650,500; unit sales price was expected to be $3,800; and unit variable costs were budgeted at $2,300.
Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
A. $155,798,733.
B. $189,973,732.
C. $161,718,730.
D. $173,523,730.
E. $145,348,733.
Answer:
A. $155,798,733.
Explanation:
The first task to determine the break-even point in sales dollars as shown below:
break-even point in sales dollars=fixed costs/contribution margin ratio
fixed costs=$1,650,500
contribution margin ratio=unit contribution margin/sales price
unit contribution margin=unit sales price- unit variable costs
unit contribution margin=$3,800-$2,300
unit contribution margin=$1,500
contribution margin ratio=$1500/$3,800
contribution margin ratio=39.47%
break-even point in sales dollars=$1,650,500/39.47%
break-even point in sales dollars=$4,181,657
margin of safety (MOS) in sales dollars=current sales- break-even point in sales dollars
current sales=42,100*$3,800=$159,980,000
margin of safety (MOS) in sales dollars=$159,980,000-$4,181,657=$155,798,343(closest to $155,798,733)
As noted in the case, HP considered approaching chain stores that sell store-brand cartridges compatible with its printers and offering them incentives if they end the practice. Considering the various types of allowances and discounts to channel members discussed within the chapter, what type of discount or allowance could the approach that HP is contemplating be most clearly identified as
Answer: a trade discount
Explanation:
Based on the information that was provided, the type of discount or allowance could the approach that HP is contemplating be most clearly identified as a trade discount.
A trade discount simply refers to the scenario when a manufacturer reduces the retail price it sells its good to the wholesaler or the retailer. Since HP approached chain stores, then a trade discount is considered here.
The following balances were taken from the books of Novak Corp. on December 31, 2020.
Interest revenue $88,200 Accumulated depreciation—equipment $42,200
Cash 53,200 Accumulated depreciation—buildings 30,200
Sales revenue 1,382,200 Notes receivable 157,200
Accounts receivable 152,200 Selling expenses 196,200
Prepaid insurance 22,200 Accounts payable 172,200
Sales returns and allowances 152,200 Bonds payable 102,200
Allowance for doubtful accounts 9,200 Administrative and general expenses 99,200
Sales discounts 47,200 Accrued liabilities 34,200
Land 102,200 Interest expense 62,200
Equipment 202,200 Notes payable 102,200
Buildings 142,200 Loss from earthquake damage 152,200
Cost of goods sold 623,200 Common stock 502,200
Retained earnings 23,200
Assume the total effective tax rate on all items is 20%.
Required:
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
Answer:
Net income = $110,400
Explanation:
Note: See the attached excel file for the multiple-step income statement for the Year Ended December 31, 2020.
Multiple-step income statement can be described as an income statement that that contains multiple additions and subtractions employed in order calculate the net income.
In a multiple-step income statement, the gross profit is shown and the operating revenues and expenses are clearly separated from the nonoperating revenues, expenses, gains, and losses.
In the attached excel, a net income is $110,400.
Would you rather be able to change the size of your body, or be able to change your age?
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Required: 1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect. 2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs: Direct materials: $2,600 Factory overhead: $520 Direct labor: $1,200 Beginning work in process: none (December 31, 2019) Ending work in process: $590 (January 31, 2020) Beginning finished goods inventory: none (December 31, 2019) Ending finished goods inventory: $370 (January 31, 2020) 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020. Pre
Answer:
Results are below.
Explanation:
First, we need to calculate the following costs as variable-fixed, and direct-indirect:
Direct materials: $2,600 (variable - direct)
Factory overhead: $520 (mixed - indirect)
Direct labor: $1,200 (variable - direct)
Now, we can calculate the cost of goods manufactured using the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 0 + 2,600 + 1,200 + 520 - 590
cost of goods manufactured= 3,730
Finally, the cost of goods sold:
beginning finished inventory= 0
cost of goods manufactured= 3,730
ending finished inventory= (370)
COGS= $3,360
very urgent, i need this answered asap
Answer:
Yes they offer no fee but then they want payed for a small fee....... Aaaa business this days
For each additional room in the house, we estimate the appraised value to increase $74,800. For a house with 0 rooms, we estimate the appraised value to be $74,800. For each additional room in the house, we estimate the appraised value to increase $17,800. For each additional dollar of appraised value, we estimate the number of rooms in the house to increase by 17.80 rooms.
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data to solve. Because, it contains only the options of the real question and the real question itself is missing. However I have found that real question. And will be choosing the right option from the given choices. And for your reference, I have attached the real question in the attachment below.
Solution:
The correct option for this question is:
For each additional room in the house, we estimate the appraised value to increase $17,800.
As this is the regression equation question.
y = βo + β1x
The intercept of the line βo = 17.80
Because the intercept of the regression model with the sample of n = 74 is 17.80, so the appraised value to increase is $17800.
Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One Rule of Conduct may apply to more than one ethical problem.)
Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
I. Commissions and referral fees
J. Form or practice and name
Rules
1. An audit client owes the CPA past-due audit fees.
2. A member violates rules issued by the Accounting and Review Services Committee.
3. A CPA accepts a percentage of the client's loan as an audit fee.
4. A CPA robs a service station.
5. The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.
Answer:
1. Contingent fees
2. Acts discreditable
3. Commissions and referral fees
4. Compliance and standards
5. Accounting principles
Explanation:
The auditors have responsibility to act professionally as the shareholders rely on their work. The auditors should not accept any gift from other businesses because it may impact their independence and objectivity. The auditors are required to follow all the rules and standards that are issued by the IASB.