Answer:
$2,288,740
Explanation:
Preparation of a retained earnings statement for the year ended December 31, 2020
RETAINED EARNINGS STATEMENT
For the Year Ended December 31, 2020
Retained earnings, January 1, as reported $715,700
Correction for overstatement of expenses in
prior period (net of tax) $88,840
Retained earnings, January 1, as adjusted $804,540
($715,700+$88,840)
Add Net income $1,567,700
Less Cash dividends ($83,500)
Retained earnings, December 31 $2,288,740
($804,540+$1,567,700-$83,500)
Therefore retained earnings statement for the year ended December 31, 2020 will be $2,288,740
Using the information presented above, determine the following: Determine EPS for Net Income ('x2) $_____________________ (Round your answer to the nearest whole cent. Example: if you determine EPS from Net Income to be $6.94724, round your answer to 6.95. If you determine EPS from Net Income to be $6.94321, round your answer to 6.94. Do not use dollar signs in recording your answer.)
Question Completion:
Income Before Taxes (from ongoing operations) $2,470,000
Income Tax Rate (’x2) 30%
5% Preferred Stock ($100 Par, 10,000 shares issued)
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)
Answer:
The company's EPS is:
= 3.46
Explanation:
a) Data and Calculations:
Income Before Taxes (from ongoing operations) (’x2)= $2,470,000
Income Tax Rate (’x2) = (30% * $2,470,000) = $741,000
Net Income after taxes = $1,729,000
5% Preferred Stock ($100 Par, 10,000 shares issued) = $1,000,000
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)
Outstanding common stock = $500,000
EPS (Earnings per share) = Net income after taxes/No. of outstanding shares
= $1,729,000/500,000
= $3.458
b) The earnings per share (EPS) equals Company A's net profit after taxes divided by the number of its outstanding common stock shares. Using the EPS, it indicates how much money Company A makes for each share of its stock. As a widely used metric, a potential stockholder of Company A can use it to estimate Company A's value when combined with the price per share.
Banks use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves
the answer is D
Answer:
B. giving loans
Explanation:
The reserve requirement system requires commercial banks to maintain a small fraction of their deposits as a reserve. Only a small percentage of the checkable deposits is required to be held in the banks as reserves. The reserves requirement fractions vary with the monetary policy in place.
The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.
Answer:
D.) maintaining reserves
Explanation:
got it right on the test review
Jim and Joan owned a farm which produced fruits and vegetables for sale. The farm was located in a heavily populated area. Every year, hundreds of customers came to buy produce from them at the farm. One day, customers were surprised to see that the farm stand was gone and that Jim and Joan had sold the property for a much higher price than farm land would normally cost. Which principle of value did the appraiser use in determining the value of the property?
Answer:
Highest and best use
Explanation:
The highest and best use principle explains the probable as well as reasonable and legal use of lands that are vacant as well as improved property. This property or land must be financially feasible and be supported appropriately so that the result gives highest value.
Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs.
Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved.
Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, e.g. 12.25.)
WATERWAYS CORPORATION
Activity Cost
Pools Cost Drivers Estimated
Overhead Expected
Use of Cost
Drivers per
Activity Actual Use of
Drivers
Irrigation installation Labor cost $1,998,432 12,960 12,941
Machining (all machine use) Machine hours 1,670,400 33,408,000 33,409,000
Customer orders Number of orders 30,636 2,553 2,520
Design Cost per design 820 8 7
Selling Number of sales calls 350,400 21,900 22,100
WATERWAYS CORPORATION
Activity Cost
Pools Activity-
Based
Overhead
Rates Actual
Cost
Assigned
Irrigation installation $
$
Machining (all machine use)
Customer orders
Design
Selling
How would you classify each of the following activities by level—unit level, batch level, product level, or facility level?
Testing of products (if all items are tested)
BatchProductFacilityUnit
Testing of products (if all items are not tested)
BatchFacilityUnitProduct
Designing new products
FacilityUnitBatchProduct
Packaging
BatchProductFacilityUnit
Molding
FacilityUnitProductBatch
Assembling
UnitFacilityBatchProduct
Depreciation
ProductBatchFacilityUnit
Machine maintenance
UnitBatchProductFacility
Advertising
ProductUnitFacilityBatch
Equipment setups
ProductBatchFacilityUnit
Electricity required to run equipment
BatchProductFacilityUnit
Requisitioning materials
UnitProductFacilityBatch
Answer:
WATERWAYS CORPORATION
a.
Activity Cost Overhead Actual Cost
Pools Activity- Rates Assigned
Based
Irrigation installation $ 154.20 $1,995,502.20
Machining (all machine use) $0.05 1,670,450.00
Customer orders $12 30,240.00
Design $102.50 717.50
Selling $16 353,600.00
b. Classification of activities by level:
Activities Levels
Testing of products (if all items are tested) Unit
Testing of products (if all items are not tested) Batch
Designing new products Product
Packaging Unit
Molding Product
Assembling Batch
Depreciation Facility
Machine maintenance Unit
Advertising Product
Equipment setups Batch
Electricity required to run equipment Facility
Requisitioning materials Unit
Explanation:
a) Data and Calculations:
WATERWAYS CORPORATION
Activity Cost Estimated Expected Actual Use
Pools Cost Drivers Overhead Use of Cost of Drivers
Drivers per
Activity
Irrigation installation Labor cost $1,998,432 12,960 12,941
Machining Machine hours 1,670,400 33,408,000 33,409,000
Customer orders No. of orders 30,636 2,553 2,520
Design Cost per design 820 8 7
Selling No. of sales calls 350,400 21,900 22,100
Overhead Rates:
Irrigation $1,998,432/12,960 = $154.20 per DLH
Machining 1,670,400/33,408,000 = $0.05 per machine hour
Customer orders 30,636/2,553 = $12 per order
Design 820/8 = $102.50 per design
Selling 350,400/21,900 = $16 per sales call
Activity Cost Overhead Actual Cost
Pools Activity- Rates Assigned
Based
Irrigation installation $ 154.20 $1,995,502.20 ($154.20*12,941)
Machining (all machine use) $0.05 1,670,450($0.05*33,409,000)
Customer orders $12 30,240 ($12*2,520)
Design $102.50 717.50($102.50*7)
Selling $16 353,600($16*22,100)
b) Levels of Activity:
Unit-level activities: At this level, the costs are concerned with direct materials, direct labor, and machine maintenance.
Product-level activities are specific to a product.
Batch‐level activities require a group (batch) of units to be produced or some processes performed together.
Facility-level activities are support activities required for the development and production of goods and services. They are organization-wide.
A supply curve is upward-sloping because At higher prices sellers have a greater incentive to produce more, ceteris paribus. The law of supply states that as price rises, the quantity supplied increases. At lower prices sellers may not be covering their costs of production and are therefore willing to supply less. All of the answers are correct.
Answer:
All of the answers are correct.
Explanation:
The law of supply states that in a production process when the price of. Commodity increases the suppliers are more willing to supply more goods, while when price falls suppliers tend to supply less goods.
This is as a result of lower motivation to sell at a lower price where profit margins are low. The higher the price the more the profit made so they are more motivated.
Also when prices are too low the suppliers may barely cover their cost of production so they tend to supply less.
Attached is a diagram of the supply curve
Take a quick look at all the market segments by clicking on the SEGMENTS/SUMMARY tab. As you analyze the opportunity for each segment, pay particular attention to the DEMOGRAPHICS for each segment. As you do so, note the SEGMENT SIZE of each market and its GROWTH RATE. From looking at the information provided about each segment, which segment represents the greatest portion of the entire market at close to 36%?
Question Completion:
Demographic Data on Market Segments
Segment Market Growth Purchase Average
Size Rate Behavior Price
Urban Commuters 20,000 3% 23% $45.00
School Children 35,000 1% 20% $24.00
Outdoor Enthusiasts 14,000 5% 12% $90.00
Luxury Trend Followers 5,000 7% 11% $70.00
University Students 24,000 5% 15% $32.00
Answer:
From looking at the information provided about each segment, the segment which represents the greatest portion of the entire market at close to 36% is:
School Children.
Explanation:
a) Data and Calculations:
Demographic Data on Market Segments
Segment Market Growth Purchase Average Market
Size Rate Behavior Price Size %
Urban Commuters 20,000 3% 23% $45.00 20.4%
School Children 35,000 1% 20% $24.00 35.7%
Outdoor Enthusiasts 14,000 5% 12% $90.00 14.3%
Luxury Trend Followers 5,000 7% 11% $70.00 5.1%
University Students 24,000 5% 15% $32.00 24.5%
Total market size 98,000
b) Market Size in percentage is computed as a ratio of each market segment to the total market size. Companies engage in market segmentation and sizing by dividing a target market into smaller, more defined categories that share similar characteristics such as demographics, interests, needs, or locations. The purpose is to identify the different groups within the target market so that more tailored and valuable goods and services can be provided to meet the customers' sweet spots.
What is profit motive
Answer:
the desire for financial gain as an incentive in economic activity.
A partnership begins its first year with the following capital balances: Alfred, Capital $ 48,000 Bernard, Capital 58,000 Collins, Capital 68,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: Each partner is allocated interest equal to 10 percent of the beginning capital balance. Bernard is allocated compensation of $16,000 per year. Any remaining profits and losses are allocated on a 3:3:4 basis, respectively. Each partner is allowed to withdraw up to $4,000 cash per year. Assuming that the net income is $58,000 and that each partner withdraws the maximum amount allowed, what is the balance in Collins capital account at the end of that year
Answer:
The balance in Collins capital account at the end of that year is:
$80,640.
Explanation:
a) Data and Calculations:
Alfred Bernard Collins Total
Capital balances $48,000 $58,000 $68,000 $174,000
Profit sharing: $58,000
Interest on capital (10%) $4,800 $5,800 $6,800 ($17,400)
Compensation 16,000 ($16,000)
Allocation of balance 7,380 7,380 9,840 ($24,600)
Drawings (4,000) (4,000) (4,000) ($12,000)
Balances $56,180 $83,180 $80,640
6 . How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has increased considerably.
Answer:
Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school.
This will shift the demand curve to the right, increasing the total demand at all price levels.Moreover, the price of ink, an important input in pen production, has increased considerably.
This will shift the supply curve to the left, increasing the price of pens at every demand level.What is sure is that the price of pens will increase. It is likely that the quantity demanded increases, but the extent by which the quantity demanded will increase is unknown.
Fatima is a regional sales manager and has decided that each member of the sales team must increase his or her current sales figures by 80% within two months if they want to remain with the company. Overall, the economy for the industry has dropped dramatically and she has decided this is the best way to motivate her sales team. Which aspect of the marketing objective is Fatima failing to recognize
Answer:
Achievable
Explanation:
Marketing objectives are set to meet up with the goals of the business. Which isnto.ake profit.
The SMART approach to marketing objectives are outline below. The marketing objectives should be;
- Specific, that is a particular objective should be set. In this case Fatima has set 80% increase on current sales figures.
- Measurable, that is the objective should be quantifiable. 80% of the current performance is measurable.
- Achievable, means that the objective should be within a reasonable scope. Targets should not be set too high.
In this case the economy for the industry has dropped dramatically, so setting objective of 80% sales increase on current performance is most likely not achievable.
- Realistic, are there sufficient personel and resources to achieve the goal.
- Time specific, it must be within a defined time period. In this case 2 months was set to achieve the objective.
On April 1, Cyclone's Co. purchases a trencher for $314,000. The machine is expected to last five years and have a salvage value of $57,000. Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method.
Answer:
Annual depreciation= $51,400
Explanation:
Giving the following information:
Purchase price= $314,000
Salvage value= $57,000
Useful life= 5 years
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (314,000 - 57,000) / 5
Annual depreciation= $51,400
The depreciation expense is the same every year.
Please help ASAP!
Zeke had great fun as a kid running a lemonade stand, and his ideas helped his class reach their fundraising goal for the class trip last year. What career cluster might Zeke be interested in?
A. Information Technology
B. Human Services
C. Science, Technology, Engineering, and Mathematics
D. Marketing, Sales, and Service
Answer: the correct answer is d
Explanation:check for yourself
Pretend you are a project manager employed by a General Contracting firm. Your company is currently serving as a Construction Management at Risk for a project and is requiring all vendors, material suppliers and subcontractors to submit digital design files. Provide 3 strategies you may implement to facilitate interoperability issues. Provide detailed descriptions of each strategy and explain why
Answer:
Three strategies for facilitating interoperability as a Risk Construction Manager are:
1. I'll carry out compatibility tests
2. Ensure that the engineering products used have a common standard and have a common technology
3. Use a system of interaction with common technology and coding language
Explanation:
The ability for a system with various different components to achieve harmony to the end that those different components are able to work together without any hindrances is called Interoperability.
Compatibility checking, using engineering products with a shared specification and using the same hardware, programming language across multiple platforms, if necessary, are aimed at enhancing or achieving interoperability.
Cheers
AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 230 pounds of alloy in process, which were 60% complete as to conversion. The Work in Process balance for these 230 pounds was $32,844, determined as follows:
Direct materials (230 x $132)$30,360
Conversion (230 x 60% x $18)2,484 $32,844
During May, the Casting Department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. Factory overhead is applied to the department at a rate of 150% of direct labor. The department transferred out 2,530 pounds of finished castings to the Machining Department. The May 31 inventory in process was 44% complete as to conversion.
a. Prepare the following May journal entries for the Casting Department:
1. The materials charged to production
2. The conversion costs charged to production
3. The completed production transferred to the Machining Department
b. Determine the Work in Process—Casting Department May 31 balance.
c. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (April).
Answer:
AccuBlade Castings Inc.
Casting Department
a. Journal Entries for:
1. The materials charged to production:
Debit WIP $350,000
Credit Raw materials $350,000
To record the cost of materials charged to production.
2. The conversion costs charged to production:
Debit WIP $49,600
Credit Direct Labor $19,840
Credit Manufacturing overhead $29,760
3. Debit Machining Department $402,827
Credit WIP $402,827
To record the transfer of completed units to the machining department.
b. Work-in-Process - Casting Department balance = $29,616
c. The change in the costs per equivalent unit for direct materials and conversion from April:
Direct Materials Conversion
April cost per equivalent unit $132.00 $18.00
May cost per equivalent unit $139.33 $19.89
Change in cost per equivalent unit $7.33 increase $1.89 increase
The cost per equivalent unit increased in both direct materials and conversion for May when compared to April's.
Explanation:
a) Data and Calculations:
Units
Beginning WIP 230
Started 2,500
Transferred 2,530
Ending WIP 200
Equivalent units of production:
Units Direct Materials Conversion
Transferred 2,530 2,530 (100%) 2,530 (100%)
Ending WIP 200 200 (100%) 88 (44%)
Total equivalent unit 2,730 2,618
Cost of production:
Direct Materials Conversion Total
Beginning WIP$30,360 (230*$132) $2,484 (230*60%*$18) $32,844
Started 350,000 (2,500*$140) 49,600 (2,500*$19.44) 399,600
Total costs $380,360 $52,084 $432,444
Cost per equivalent unit:
Direct Materials Conversion
Total costs $380,360 $52,084
Equivalent units 2,730 2,618
Cost per equivalent unit $139.33 $19.89
Allocation of production costs:
Direct Materials Conversion Total
Units transferred out $352,505(2,530*$139.33) $50,322 (2,530*$19.89) $402,827
Ending WIp 27,866(200*$139.33) $1,750 (88*$19.89) $29,616
Total costs $380,371 $52,072 $432,443
4.9 Each day of the week you meet with your direct supervisor and your coworkers for a morning meeting. The meeting is open-forum and issues, goals, topics, and ideas are all discussed at the meeting, during which the supervisor responds when able and asks for feedback often. This is an example of ___________________________________. A. authority compliance management B. team management C. country club management D. middle-of-the-road management
Answer:
B. team management
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
In this scenario, each day of the week you meet with your direct supervisor and your coworkers for a morning meeting. The meeting is open-forum and issues, goals, topics, and ideas are all discussed at the meeting, during which the supervisor responds when able and asks for feedback often. This is an example of team management.
Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) f. Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Answer and Explanation:
Missing information in the question:
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2016 Income Statement Sales $ 574,200 Costs of goods sold 273,935 Selling and administrative 124,715 Depreciation 54,558 EBIT $ 120,992 Interest 19,692 EBT $ 101,300 Taxes 40,520 Net income $ 60,780 Dividends $ 11,400 Addition to retained earnings $ 49,380 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 Cash $ 13,500 Accounts payable $ 9,486 Accounts receivable 18,976 Notes payable 14,490 Inventory 13,812 Current liabilities $ 23,976 Current assets $ 46,288 Long-term debt $ 135,360 Net fixed assets $ 344,966 Owner's equity $ 231,918 Total assets $ 391,254 Total liabilities and owners’ equity $ 391,254 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 Cash $ 14,486 Accounts payable $ 10,530 Accounts receivable 21,081 Notes payable 16,484 Inventory 22,772 Current liabilities $ 27,014 Current assets $ 58,339 Long-term debt $ 153,800 Net fixed assets $ 406,293 Owner's equity $ 283,818 Total assets $ 464,632 Total liabilities and owners’ equity $ 464,632
The computation is shown below:
Cash flow to creditors is
= Interest expense - long term debt on 2016 + long term debt on 2015
= $19,692 - $153,800 + $135,360
= $1,252
And, the cash flow to stockholder is
= Dividend paid - owner equity 2016 + owner equity 2015 + retained earnings
= $11,400 - $283,818 + $231,918 + $49,380
= $8,880
Jose has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years. He must invest $10,000 at the start of the first year and an additional $10,000 at the end of the first year. What is the present value of this investment if the interest rate is 8%?
Answer: $19963.6
Explanation:
The present value of this investment if the interest rate is 8% would be gotten by using the formula below;
PV = PMT/[r × (1+r)^n / (1+r)^n -1]
PV = 5000[8% × (1+8%)^5 / (1+8%)^5-1
PV = 5000[0.08 + 1.08^5 / 1.08^4
PV = 19963.6
Therefore, the present value of the investment is 19963.6
There are a number of statistics computed to measure the price level, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred.
Question Completion:
a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living.
b. The government is interested in whether increases in defense spending are affecting the price level.
c. An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.
Answer:
The GDP Deflator and the CPI
a. The CPI is used here, as its measure is not restricted to domestically produced goods and services.
b. The GDP Deflator is more appropriate here. Defense spending is not related to consumer goods and services but to government spending, which is a component of the GDP.
c. The GDP Deflator is more appropriate with this investigation. Computers and electronic technology used in production relate to business Investments, which are a component of the GDP and are not part of consumer goods and services or a component of the CPI.
Explanation:
The GDP deflator is exclusively used to measure the prices of all goods and services produced domestically in an economy and is based on the nominal or real GDP. On the other hand, the CPI (Consumer Price Index) is used to measure the weighted average prices of a basket of consumer goods and services, whether produced domestically or imported.
The three steps for reframing a conversation with an angry customer are; here’s who we are here’s what we do and here’s how we can help
Select one:
True
False
The three steps for reframing a conversation with an angry customer are; here’s who we are, here’s what we do and here’s how we can help is the correct statement.
Who are customers?Customers are the people that buys some goods or services from the shop or anywhere. Customers always feel satisfied and accomplished with the overwhelming experience of shopping. If the customers are happy, they become permanent customers.
Thus, the statement is true.
For more information about Customers, click here:
https://brainly.com/question/15047886
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The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: Year Enrollment Four years ago 2000 Three years ago 2200 Two years ago 2800 Last year 3000 What is this year's forecast using the least squares trend line for these data
Answer:
I used an Excel spreadsheet to calculate R² which gives us the least squares trend. See attached image.
y = 360x + 1600
R² = 0,9529
next year's enrollment should be = (360 x 5) + 1600 = 3400
Michael's, Inc., just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.6 percent. If you require a rate of return of 9.8 percent, how much are you willing to pay today to purchase one share of the company's stock
Answer:
$65.37
Explanation:
Calculation for how much are you willing to pay today to purchase one share of the company's stock
Using this formula
P/0 = D0 ( 1 + g ) / R-g
Let plug in the formula
P/0 = $2.60 (1 + .056) / .098 - .056
P/0 = $2.60 (1 .056)/0.042
P/0=$2.7456/0.042
P/0=$65.37
Therefore how much are you willing to pay today to purchase one share of the company's stock will be $65.37
A grandfather wants to know the average height of all his grandchildren. He finds that the heights of his 9 grandchildren are given in inches by 67,68,71,67,76, 74, 77,70, 72 What is the population mean of the height of his grandchildren in inches? Round your answer to the nearest tenth of an inch and do not include units.
Answer:
71.3
Explanation:
to find the mean you have to add all of the heights together and then divide by nine, which is how many heights are given.
fter 15 years of employment in the airline industry, John started his own consulting company to use physical and computer simulation in the analysis of commercial airport accidents on runways. He estimates his average cost of new capital at 8% per year for physical simulation projects, that is, where he physically reconstructs the accident using scale versions of planes, buildings, vehicles, etc. He has established 17% per year as the MARR. What net rate of return on capital investments for physical simulation does he expect
Answer:
The answer is "9%".
Explanation:
Please find the complete question in the attached file.
The formula for calculating the net return rate:
[tex]\to \text{Net return rate= MARR - Capital Cost}[/tex]
[tex]= 17\% - 8\% \\\\= 9\%[/tex]
Therefore, the net return rate is 9%.
Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. Required: (a) Journalize the entry required to close the Teresa Schafer, Drawing account. Refer to the Chart of Accounts for exact wording of account titles. (b) Determine the amount of Teresa Schafer, Capital at the end of the period.
Answer:
a. To close off the Drawing account, post the drawing to the Capital account:
Date Account Details Debit Credit
December 31 Teresa Schafer, Capital $770,000
Teresa Schafer, Drawing $770,000
b. Amount in Capital account.
Calculate Net income:
= Revenue - Expenses
= 3,190,000 - 2,350,000
= $840,000
Teresa Schafer, Capital at December 31, 20XX
Opening Balance $1,885,000
Add: Net income $ 840,000
$2,725,000
Less: Drawing ($770,000)
Closing balance $1,955,000
The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)
Oa. $40,000
Ob. 58,112
Oc. $31,888
Od. $48,112
Answer:
c. $31,888
Explanation:
The formula for calculating the present value is as below
Pv = FV x { 1/ (1+ r)^n }
Pv = $40,000 x { 1/ (1 +0.12)^2
Pv =$40,000 x (1/1.2544)
Pv =$40,000 x 0.7971938
Pv =$31,887.50
Jessica is a U.S. Army Reservist and in 2020 traveled 130 miles each way to serve duty at a local military installation. She was required to report four times in 2020. Her normal route from home to the base included a $1.75 toll each way. Jessica's for AGI deduction for these costs is:
Answer:
AGI Deduction = 580.8 US dollars.
Explanation:
Solution:
Data Given:
Miles traveled = 130 miles
Reporting Period = 4 times in 2020
Cost from home to base = $1.75 toll each way.
Jessica's for AGI deduction for these costs is:
First, we need to find the travel amount:
Travel amount = Miles x Reporting Period x 2 x Mileage rate for deduction
Here, mileage rate for deduction = 0.545 per mile. So,
Travel Amount = 130 miles x 4 times x 2 x 0.545
Travel Amount = 566.8 US dollars.
Now, we need to find the Jessica's Toll Expenses.
Toll Expenses = 1.75 x 2 x 4 times
Toll Expenses = 14 US dollars.
Finally, we can find the required AGI Deduction:
AGI Deduction = Travel Amount + Toll Expenses.
AGI Deduction = 566.8 US dollars + 14 US dollars
Hence, Jessica's AGI deductions are:
AGI Deduction = 580.8 US dollars.
Why is it important to select products and services that represent best value for money
Answer:
Too low of a price means you forgo potential profits. The most important factor in product price setting is choosing a price low enough that customers perceive they are getting a good value relative to what your competitors are offering and the prices they are charging -- but yet high enough to generate a profit.
Explanation:
Eaton Tool Company has fixed costs of $407,400, sells its units for $90, and has variable costs of $48 per unit. a. Compute the break-even point. b. Ms. Eaton comes up with a new plan to cut fixed costs to $320,000. However, more labor will now be required, which will increase variable costs per unit to $51. The sales price will remain at $90. What is the new break-even point
Answer and Explanation:
The computation of the break even point is given below
As we know that
Break even point is
= (Fixed cost) ÷ (Selling price per unit - variable cost per unit)
a. Break even point is
= ($407,400) ÷ ($90 - $48)
= 9,700 units
b. The break even point is
= ($320,000) ÷ ($90 - $51)
= 8,205 units
Please answer thank you !!!
Answer:
I think its the 3 one
Assume sales are $14,570, cost of goods sold is $3,820, depreciation expense is $410, interest paid is $730, selling and general expenses are $960, dividends paid are $1,170, and the tax rate is 21 percent. What is the addition to retained earnings
Answer:
Amount added to retained earnings $5,663.50
Explanation:
The computation of the addition to the retained earning is shown below:
Sales $14,570
Less: Cost of goods sold -$3,820
Less: Depreciation -$410
Less: Interest paid -$730
Less: Selling and administration expenses -$960
Profit Before Tax $8,650
Less: Tax at 21% -1,816.50
Profit After tax $6,833.50
Less: Dividend paid -$1,170
Amount added to retained earnings $5,663.50
