Answer:
The definition of the problem is listed throughout the section below on explanations.
Explanation:
ABC Inc employs ABC Inc as an internal auditor as well as CEO into becoming compliant with ESG. She requests you should consider 2 recommendations each for ABC Inc's ESG research on Climate, Economic, and Governance. Why your advice will ensure ABC Inc operates differently against Enron.
Environment:
Through its operational activities, ABC should incorporate renewable energy. Solar panels could be used for generating power in organizations where appropriate.ABC will devote 5% of all its sales to research for environmentally friendly energy resources to significantly reduce its reliance on coal.Social:
ABC could perhaps recognize the perspective including its investors and therefore should share the required info.When the CEO is unaware of the corporation's misconduct as well as some informant points something out to herself, therefore that individual or organization must be tended to or respected.Governance:
ABC ought to be more open concerning its activities. If it's the founder or the worker. Stockholders ought to learn what the internal operations of their business are.Boards must be supervised closely and they should include separate, representative members. Their pay should not have been so strong that incongruity is prevented in conferences.As contrasted with Enron's. Enron did not follow up on such above compliance issues.
We were vague when it came to disclosing their liabilities off the income statement. Shareholders were unfamiliar with the firm's operations.Whistle-blower or anybody who referred out such a program flaw was embarrassed and disciplined.ABC Inc may obey these guidelines above to have been consistent with ESG.
The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families: Accounts Receivable $ 1,235 Equipment $ 415 Accumulated Amortization 840 Goodwill 595 Accumulated Depreciation 360 Inventories 380 Allowance for Doubtful Accounts 15 Land 5 Buildings 180 Licensing Rights 1,860 Cash and Cash Equivalents 980 Prepaid Rent 290 Required: Prepare the asset section of a classified balance sheet for Hasbro, Inc. Using Hasbro’s 2015 Net Sales Revenue of $4,450 (million), its Net Fixed Assets of $240 (million) at December 28, 2014, and its Net Fixed Assets computed at December 27, 2015, calculate the fixed asset turnover ratio for 2015.
Answer:
The assets session if the company may be presented as follows;
Hasbro Inc.
Assets section of the balance sheet
Assets Amount in $'millions Amount in $'millions
Current Assets
Cash and cash equivalent 980
Account receivables 1,235
Allowance for doubtful debt (15)
Inventories 380
Prepaid rent 290
Total current asset 2,870
Property, plant and equipment
Land 5
Building 180
Equipment 415
Accumulated depreciation (360)
Property, plant and equipment (net) 240
Other assets
Licensing rights 1860
Accumulated amortization (840)
Goodwill 595
Total other assets 1615
Total assets 4,725
Fixed assets turnover ratio for 2015 = 18.54
Explanation:
The asset turnover is a financial measure that shows how much revenue management has been able to generate for each $1 invested in asset. In computing the asset turnover ratio, we use the average asset which is the result of the opening asset plus closing assets divided by 2.
The fixed asset amounts to the cost net the accumulated depreciation
The Fixed asset as at December 27 2015,
= $415 + $5 +180 - 360
= $240
Average asset turnover = (240 + 240)/2
= $240
Fixed assets turnover ratio for 2015 = $4,450/$240
= 18.54
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 71,000 Delivery cost $ 3,000 Installation charge $ 2,000 Estimated life 5 years Estimated units 146,000 Salvage estimate $ 3,000 During Year 1, the machine produced 42,000 units, and during Year 2 it produced 44,000 units. Required a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the m
Answer:
a. The amount of depreciation expense for Year 1 and Year 2 using straight-line method is for year 1 and year 2 $14,600
b. the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance is for year 1 $30,400 and for year 2 $18,240
c. the amount of depreciation expense for Year 1 and Year 2 using units of production method is for year 1 $21,840 and for year 2 is $22,880
d. the amount of depreciation expense for Year 1 and Year 2 using MACRS is for year 1 $10,860 and for year 2 $18,612
Explanation:
a. To calculate the amount of depreciation expense for Year 1 and Year 2 using straight-line method we would have to make the following calculation:
Straight line Depreciation = ($71,000 + $3,000 + $2,000- $3,000) /5 = $14,600
For each year same depreciation
B) To calculate the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method we have to make the following calculations:
Double declining method = 1/5 * 2 = 40%
Year 1 depreciation -= $76,000 *40% = $30,400
Year 2 Depreciation = ($76,000 - $30,400) 40% = $18,240
c) To calculate the amount of depreciation expense for Year 1 and Year 2 using units of production method we have to make the following calculations:
Unit production method
76000/146000 = 0.52
Year 1 42,000 *0.52 = $21,840
Year 2 44,000 * .52 = $22,880
d) To calculate the amount of depreciation expense for Year 1 and Year 2 using MACRS we have to make the following calclations:
MACRS
Year 1 = 76000 *14.29% = $10,860
Year 2= - 76000 *24.49% = $18,612
Depreciation for Year 1 and Year 2:
a. Straight-Line: $13,600 each year.
b. Double-Declining-Balance: $28,400 (Year 1), $17,040 (Year 2).
c. Units of Production: $20,160 (Year 1), $21,120 (Year 2).
d. MACRS: $14,200 (Year 1), $16,992 (Year 2).
How is this so?a. Straight-Line Method:
- Year 1 Depreciation = (Purchase Price - Salvage Estimate) / Estimated Life
- Year 1 Depreciation = ($71,000 - $3,000) / 5 = $13,600
- Year 2 Depreciation = (Purchase Price - Salvage Estimate) / Estimated Life
- Year 2 Depreciation = ($71,000 - $3,000) / 5 = $13,600
b. Double-Declining-Balance Method:
- Year 1 Depreciation = (2 / Estimated Life) x Book Value at the Beginning of Year 1
- Year 1 Book Value = Purchase Price - Year 1 Depreciation
- Year 1 Depreciation = (2 / 5) x ($71,000) = $28,400
- Year 1 Book Value = $71,000 - $28,400 = $42,600
- Year 2 Depreciation = (2 / Estimated Life) x Book Value at the Beginning of Year 2
- Year 2 Book Value = Year 1 Book Value - Year 1 Depreciation
- Year 2 Depreciation = (2 / 5) x ($42,600) = $17,040
c. Units of Production Method:
- Determine the depreciation rate per unit: (Purchase Price - Salvage Estimate) / Estimated Units
- Depreciation per unit = ($71,000 - $3,000) / 146,000 = $0.48 per unit
- Year 1 Depreciation = Depreciation per unit x Units produced in Year 1
- Year 1 Depreciation = $0.48 x 42,000 = $20,160
- Year 2 Depreciation = Depreciation per unit x Units produced in Year 2
- Year 2 Depreciation = $0.48 x 44,000 = $21,120
d. MACRS (assuming 5-year property):
- MACRS provides specific depreciation percentages for each year of an asset's life. Assuming a 5-year property, Year 1 uses a 20% depreciation rate, and Year 2 uses a 32% depreciation rate.
- Year 1 Depreciation = 20% x Purchase Price
- Year 1 Depreciation = 0.20 x $71,000 = $14,200
- Year 2 Depreciation = 32% x Book Value at the Beginning of Year 2
- Year 2 Book Value = Purchase Price - Year 1 Depreciation
- Year 2 Depreciation = 0.32 x ($71,000 - $14,200) = $16,992
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On August 1, Sandhill Company buys 1,060 shares of BCN common stock for $32,520 cash. On December 1, the stock investments are sold for $39,470 in cash. Journalize the purchase and sale of the common stock. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer: Please refer to Explanation
Explanation:
Date
August 1
DR Stock Investments $32,520
CR Cash $32,520
(To Record purchase of stock)
December 1
DR Cash $39,470
CR Stock Investment $32,520
CR Gain on Sale of Investment $6,950
(To record Sale of Investment)
Working
Gain on sale of investment = Selling Price - Cost Price
= 39,470 - 32,520
= $6,950
Narrations are not needed in the question but I included them for knowledge.
Blossom Company had the following transactions involving notes payable. July 1, 2020 Borrows $61,000 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2020 Borrows $73,200 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2020 Prepares adjusting entries. Feb. 1, 2021 Pays principal and interest to Lyon County State Bank. Apr. 1, 2021 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions.
Answer and Explanation:
According to the scenario, journal entries of the given data are as follow:-
Journal Entries
On July 1
Cash A/c Dr. $61,000
To 8% Notes payable A/c $61,000
(Being the cash borrowed from first national bank is recorded)
For recording this we debited the cash as it increases the assets and credited the note payable as it also increased the liabilities
On Nov 1
Cash A/c Dr. $73,200
To 6% Notes payable A/c $73,200
(Being the cash borrowed from first national bank is recorded)
For recording this we debited the cash as it increases the assets and credited the note payable as it also increased the liabilities
On Dec 31
Interest expense {(61,000 × 8%) × 6 ÷ 12} A/c Dr. $2,440
To Interest payable A/c $2,440
(Being interest expense is recorded)
For recording this we debited the interest expense as it increase the expenses and at the same time it also increased the liabilities so interest payable is credited
On Dec 31
Interest expense (73,200 × 6%) × 2 ÷ 12 A/c Dr. $732
To Interest payable A/c $732
(Being interest expense is recorded)
For recording this we debited the interest expense as it increase the expenses and at the same time it also increased the liabilities so interest payable is credited
On Feb 1
Notes payable A/c Dr. $73,200
Interest expenses A/c (732 ÷ 2) Dr. $366
Interest payable A/c Dr. $732
To Cash A/c $74,298
(Being cash is paid)
It decrease the liabilities, it increased the expenses so the respective accounts are debited and since cash is paid which reduced the assets so this account is credited
On April 1
Notes payable A/c Dr. $61,000
Interest expenses A/c ($2,440 ÷ 2) Dr. $1,220
Interest payable A/c Dr. $2,440
To Cash A/c $64,660
(Being cash is paid)
It decrease the liabilities, it increased the expenses so the respective accounts are debited and since cash is paid which reduced the assets so this account is credited
To prepare journal entries for Blossom Company's transactions involving notes payable, follow the impact of each transaction on the company's accounts, creating liabilities (notes payable) and adjusting cash accordingly.
Explanation:To prepare the journal entries for Blossom Company's transactions involving notes payable, we need to understand the impact of each transaction on the company's accounts.
July 1, 2020: The company borrows $61,000 from First National Bank, creating a liability (notes payable) and increasing cash.Nov. 1, 2020: The company borrows $73,200 from Lyon County State Bank, creating another liability (notes payable) and increasing cash.Dec. 31, 2020: No journal entry is required on this date as it's only for preparing adjusting entries.Feb. 1, 2021: The company pays the principal and interest to Lyon County State Bank, reducing the liability (notes payable) and decreasing cash.Apr. 1, 2021: The company pays the principal and interest to First National Bank, reducing the liability (notes payable) and decreasing cash.Learn more about Journal entries for notes payable transactions here:https://brainly.com/question/30529472
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Which of the following is the correct order for the preparation of the listed budgets? A) Budgeted income statement, sales budget, cash budget B) Cash budget, capital acquisitions budget, direct labor budget C) Sales budget, direct material purchases budget, budgeted income statement D) Direct labor budget, sales budget, budgeted income statement
Answer:
The correct option is C,sales budget, direct material purchases budget, budgeted income statement
Explanation:
Te correct order in preparing budgets is to first of all have a sales forecast based on information on previous years' sales figures as well as looking at the future economic outlook.
When sales forecasts are made based on educated guess,the sales budget is prepared using the most appropriate selling price per unit.
Thereafter,based on the number of units planned for sales,the required materials needed to accomplish the sales level is forecast,hence direct material purchases budget is prepared with informed unit cost of material.
Lastly,the income statement which encompasses both revenue from sales budget in addition to costs from direct materials purchase budget is finalized.
Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities
Net income $ 5,147
Purchase of property, plant, and equipment 2,084
Borrowings under line of credit (bank) 1,129
Proceeds from issuance of stock 26
Cash received from customers 37,179
Payments to reduce long-term debt 61
Sale of marketable securities 237
Proceeds from sale of property and equipment 6,892
Dividends paid 293
Interest paid 103
Purchase of treasury stock (stock repurchase) 2,571
Required: Based on this information, present the investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)
Answer and Explanation:
The presentation of the investing and financing activities are presented below:
Cash flow from investing activities
Purchase of property, plant, and equipment -$2,084
Proceeds from sale of property and equipment $6,892
Sale of marketable securities $229
Cash flow provided by investing activities $5,037
Cash flow from financing activities
Borrowings under line of credit $1,129
Proceeds from issuance of stock $26
Payments on long-term debt -$61
Payment of dividends -$293
Purchase of treasury stock -$2,571
Net cash flow from financing activities $1,770
The positive sign indicates the cash inflow and negative sign indicates the cash outflow
Cash flow from investing activities
Purchase of property, plant, and equipment -$2,084
Proceeds from sale of property and equipment $6,892
Sale of marketable securities $229
Cash flow provided by investing activities $5,037
Cash flow from financing activities
Borrowings under line of credit $1,129
Proceeds from issuance of stock $26
Payments on long-term debt -$61
Payment of dividends -$293
Purchase of treasury stock -$2,571
Net cash flow from financing activities $1,770
Like this way, it is to be presented.
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Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 670,000 Variable expenses $ 295,000 Fixed manufacturing expenses $ 246,000 Fixed selling and administrative expenses $ 194,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $196,000 of the fixed manufacturing expenses and $111,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.) b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
Answer:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
net loss -$65,000b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increaseExplanation:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000
Urban Outfitters wants to raise $25 million to finance the construction of a new store, and the company wishes to raise the funds through direct finance. Which of the following methods could it use? A. It could sell $25 million in bonds. B. It could borrow $25 million from a bank. C. It could issue $25 million in stock. D. It could choose either A or C.
Answer: D. It could choose either A or C.
Explanation: Direct finance involves the borrowing of funds from the financial market without the use of intermediaries. As such, it helps avoid the costs that might be incurred from the use of such intermediaries such as banks, brokers etc. Example of such financing is the issuance of shares, bonds, the purchase of newly issued commercial papers etc. In order to raise $25 million through direct finance to finance the construction of its new store, the company Urban Outfitters can either sell the amount needed to be raised in bonds or it could issue the same amount in stock.
Which statement on MRP explosion is BEST? Group of answer choices It calculates the total number of subassemblies, components, and raw materials needed for each parent item. It calculates the total number of raw materials to be purchased from all suppliers. It calculates the total number of parts needed to be produced less the number of parts on hand for each parent item. It calculates the total number of parts to be produced for each parent item.
Answer:
It calculates the total number of subassemblies, components, and raw materials needed for each parent item.
Explanation: A maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh. However, retailers may choose to sell products for less than the MRP.
It is called Process Explosion to refer to Routings (Bill of Operation), take the manufacturing order to processes, and then issue an operation order by the process. By performing the Process Explosion, the necessary processes to produce an item, the order for performing them, the labor hours in each process, and etc.
Suppose that interest rates decrease. Holding everything else constant, determine what happens to aggregate demand and its components. If interest rates decrease, consumption . If interest rates decrease, investment . If interest rates decrease, government spending . If interest rates decrease, the value of net exports . Answer Bank does not change decreases increases Overall, aggregate demand
Answer:
When interest rates decrease, It causes a ripple effect in the economy that stimulates growth and wealth creation. In the long run, it might cause inflation.
Explanation:
If interest rates decrease, consumption increases because there is more disposable income available in each household.If interest rates decrease, investment increases since the cost of borrowing is cheaper.If interest rates decrease, government spending decreases . If interest rates decrease, the value of net exports increase because the economy us stimulated as a result of a business boom facilitated by low and affordable loans.. Zara, an HR manager at Fluxin LLC, is responsible for implementing a guided self-appraisal system using management by objectives in her organization. She has developed specific standards for performance. Which of the following is typically the next step for Zara? a. Continuing performance discussions. b. Implementation of the performance standards. c. Setting of objectives. d. Job review and agreement.
Answer:
Setting of objectives.
Explanation:
Performance appraisal system can be described as a means of measuring the level of employees performance on a job. This system helps the managers to review their employees strengths and weakness, it also creates an avenue for the workers to increase the level of their productivity in the company.
From the scenario described above, Zara the HR manager at Fluxin LLC has implemented a guided self-appraisal system which is used individually by the employees to measure their performance based on the management specific standards for performance. The next step for her to take is to set the different objectives in which all employees of the organisation must try to attain for the growth and success of the company.
Cashmere Soap Corporation had the following items listed in its trial balance at 12/31/2018: Currency and coins $ 630 Balance in checking account 2,900 Customer checks waiting to be deposited 2,900 Treasury bills, purchased on 11/1/2018, mature on 4/30/2019 3,600 Marketable equity securities 10,400 Commercial paper, purchased on 11/1/2018, mature on 1/30/2019 4,700 What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents
Answer:
11130
Explanation:
630+2,900+2,900+4,700
Marigold Corp. is indebted to Ivanhoe under a $960000, 13%, three-year note dated December 31, 2019. Because of Marigolds financial difficulties developing in 2021, Marigold owed accrued interest of $124800 on the note at December 31, 2021. Under a troubled debt restructuring, on December 31, 2021, Ivanhoe agreed to settle the note and accrued interest for a tract of land having a fair value of $870000. Marigolds acquisition cost of the land is $720000.
Required:
1. Ignoring income taxes, on its 2021 income statement, what should Marigold report as its gain on disposal and restructuring gain?
Answer:
$150,000 and $214,800
Explanation:
The computation is shown below:
Gain on disposal = Fair value of the land - cost of the land
= $870,000 - $720,000
= $150,000
Now the restructuring gain is
= Loan amount + accrued interest - fair value of the land
= $960,000 + $124,800 - $870,000
= $214,800
We simply applied the above formulas so that the gain on disposal and restructuring gain could come
Flax purchased $5,000 in equipment during 20X4. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its Statement of Cash Flows for the year ended December 31, 20X4, for cash paid for goods to be sold? $242,500 $257,500 $226,500 $258,500
Answer:
The financial statement missing from the question is found below:
Flax Corp. uses the direct method to prepare its Statement of Cash Flows. Flax's trial balances at December 31, 20X4 and 20X3, are as follows: Debits: Cash Accounts receivable Inventory Property, plant, & equipment December 31 20x4 20X3 33,000 30,000 $35,000 $32,000 33,000 30,000 31,000 47,000 100,000 4,500 5,000 250,000 380,000 141,500 172,000 137,000 151,300 2,600 20,400 61,200 $756,700 $976,100 Unamortized bond discount Cost of goods sold Selling expenses General & administrative expenses Interest expense Income tax expense Credits: Allowance for uncollectible accounts $1,100 Accumulated depreciation 15,000 $1,300 16,500 25,000 21,000 Trade accounts payable 17,500 Income taxes payable 27,100 Deferred income taxes 4,600 5,300 45,000 8% callable bonds payable 20,000 Common stock 50,000 40,000 7,500 Additional paid-in capital 9,100 Retained earnings 44,700 64,600 Sales 538,800 $756,700 778,700 $976,100 Flax purchased $5,000 in equipment during 20X4. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its Statement of Cash Flows for the year ended December 31, 20X4, for cash paid for goods to be sold? $242,500 $257,500 $258,500 $226,500
cash paid for goods to be sold is $226,500
Explanation:
Cash paid for goods to be sold is equals to cost of goods minus the reduction in inventory(opening stock minus closing stock) minus the increase in accounts payable(closing accounts payable minus opening accounts payable)
Cost of goods sold is $250,000 as highlighted which is shown in bold style in the question above.
Reduction in inventory=(47000-31000)=16000
increase in accounts payable =25000-17500=7500
cash for cost of goods sold=$250,000-$16,000-$7,500=$226,500
The correct option is the third option in the multiple choices provided
Final answer:
Flax should report $257,500 in its Statement of Cash Flows for cash paid for goods to be sold.
Explanation:
The cash paid for goods to be sold includes the cost of goods sold and any changes in inventory during the period. Since the equipment purchase is not directly related to the cost of goods sold, it is excluded from this calculation. However, depreciation expense associated with the equipment affects the cost of goods sold indirectly. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. By adding the portion of depreciation expense related to selling expenses to the cost of goods sold, we can determine the total cash paid for goods to be sold. Therefore, we add one-third of the equipment purchase ($5,000 / 3 = $1,666.67) to the cost of goods sold ($256,833.33), resulting in a total of $258,500. This is the amount Flax should report for cash paid for goods to be sold.
Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $24,250; 20Y2, $9,000; 20Y3, $106,750; 20Y4, $95,000; 20Y5, $110,000; and 20Y6, $165,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $80 par, and 100,000 shares of common stock, $4 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".
Answer:
See the explanation below.
Explanation:
Note: Find attached the summary table.
Total annual dividend payable to cumulative preferred 2% stock = 25,000 * $80 * 2% = $40,000
For 20Y1
Dividend declared = $24,250
Total payable to cumulative preferred 2% stock = $24,250
Cumulative preferred stock per share = $24,250 / 25,000 = $0.97 per share
Total cumulative preferred carried forward = $40,000 - $24,250 = $15,750
Total dividend payable to common stock = $0
Common stock dividend per share = $0
For 20Y2
Dividend declared = $9,000
Total payable to cumulative preferred 2% stock = $9,000
Cumulative preferred stock per share = $9,000 / 25,000 = $0.36 per share
Total cumulative preferred carried forward = $40,000 - $9,000 + $15,750 = $46,750
Total dividend payable to common stock = $0
Common stock dividend per share = $0
For 20Y3
Dividend declared = $106,750
Total payable to cumulative preferred 2% stock = $40,000 + $46,750 = $86,750
Cumulative preferred stock per share = $86,750 / 25,000 = $3.47 per share
Total dividend payable to common stock = $106,750 - $86,750 = $20,000
Common stock dividend per share = $20,000 / 100,000 = $0.20 per share
For 20Y4
Dividend declared = $95,000
Total payable to cumulative preferred 2% stock = $40,000
Cumulative preferred stock per share = $40,000 / 25,000 = $1.60 per share
Total dividend payable to common stock = $95,000 - $40,000 = $55,000
Common stock dividend per share = $55,000 / 100,000 = $0.55 per share
For 20Y5
Dividend declared = $110,000
Total payable to cumulative preferred 2% stock = $40,000
Cumulative preferred stock per share = $40,000 / 25,000 = $1.60 per share
Total dividend payable to common stock = $110,000 - $40,000 = $70,000
Common stock dividend per share = $70,000 / 100,000 = $0.70 per share
For 20Y6
Dividend declared = $165,000
Total payable to cumulative preferred 2% stock = $40,000
Cumulative preferred stock per share = $40,000 / 25,000 = $1.60 per share
Total dividend payable to common stock = $165,000 - $40,000 = $125,000
Common stock dividend per share = $125,000 / 100,000 = $1.25 per share
To determine the total dividends and per-share dividends declared on each class of stock for each of the six years, calculate separately for preferred stock and common stock.
Explanation:To determine the total dividends and per-share dividends declared on each class of stock for each of the six years, we need to calculate them separately for preferred stock and common stock. For preferred stock, we multiply the number of preferred shares by the dividend rate (2%) to find the total annual dividend, and then divide it by the number of preferred shares to find the per-share dividend. For common stock, we divide the total dividend by the number of common shares to find the per-share dividend.
In 20Y1, the total dividend for preferred stock is $500 (25,000 shares × 2%) and the per-share dividend is $0.04 ($500 ÷ 25,000 shares). For common stock, the per-share dividend is $0.19 ($24,250 ÷ 100,000 shares).In 20Y2, there is no dividend for preferred stock because it is cumulative and there were no dividends in arrears. For common stock, the per-share dividend is $0.09 ($9,000 ÷ 100,000 shares).In 20Y3, the total dividend for preferred stock is $1,000 (25,000 shares × 2%) and the per-share dividend is $0.04 ($1,000 ÷ 25,000 shares). For common stock, the per-share dividend is $0.82 ($106,750 ÷ 130,000 shares).In 20Y4, the total dividend for preferred stock is $1,000 (25,000 shares × 2%) and the per-share dividend is $0.04 ($1,000 ÷ 25,000 shares). For common stock, the per-share dividend is $0.95 ($95,000 ÷ 100,000 shares).In 20Y5, the total dividend for preferred stock is $1,000 (25,000 shares × 2%) and the per-share dividend is $0.04 ($1,000 ÷ 25,000 shares). For common stock, the per-share dividend is $1.10 ($110,000 ÷ 100,000 shares).In 20Y6, the total dividend for preferred stock is $1,000 (25,000 shares × 2%) and the per-share dividend is $0.04 ($1,000 ÷ 25,000 shares). For common stock, the per-share dividend is $1.65 ($165,000 ÷ 100,000 shares).Learn more about Dividends here:https://brainly.com/question/33428821
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J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. Ross' common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. J. Ross's cost of retained earnings is closest to: a. 15.50 percent b. 12.20 percent c. 16.34 percent d. 10.42 percent
Answer:
The cost of retained earnings is 15.50%
Explanation:
The cost of retained earnings is the cost of equity capital to the firm. We will use the dividend discount model equation to calculate the cost of retained earnings.
The constant growth model of DDM is used to calculate the price of a stock whose dividends are expected to grow at a constant rate every year. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) which is the dividend expected for the next period of D1r is the cost of equityg is the growth rate in dividendsAs we already have the price today, the D0 and the growth rate, we can plug in these variables in the equation to calculate the cost of retained earnings.
40 = 2 * (1+0.1) / (r - 0.1)
40 * (r - 0.1) = 2.2
40r - 4 = 2.2
40r = 2.2 + 4
r = 6.2 / 40
r = 0.155 or 15.5%
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $136,300. The equipment will have an initial cost of $470,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $8,000, what is the accounting rate of return?
Answer:
The correct answer is 29.00%
Explanation:
The account rate of return on investment is the percentage of the amount invested that makes up the net return on investment. This is calculated as:
rate of return = (net income from investment ÷ cost of investment) × 100
net income from investment = $136,300
cost of investment = $470,000
∴ Rate of return = (136,300 ÷ 470,000) × 100 = 0.29 = 29%
During the recent recession sparked by financial crisis, the U.S. economy suffered tremendously. Suppose that, due to the recession U.S. GDP dropped from $14 trillion to $12.5 trillion. This fall in GDP was due to a drop in consumption of $1 trillion and a drop in investment of $500 billion. The U.S. government, under the Obama administration, responded to this recession by increasing government purchases Suppose that government spending had no impact on consumption, investment, or net exports If the Obama administration wanted to bring GDP back up to $14 trillion, government spending would have to rise by ________
Answer:
$1.5 trillion
Explanation:
According to the scenario, computation of the given data are as follow:-
As we know that,
Real GDP = Consumption + Investment + Government Spending + (Export-Import)
US GDP dropped from $14 trillion to $12.5 trillion. The consumption decreased by $1 trillion and investment decreased by $500 billion. So in order to increase the GDP from $12.5 trillion to $14 trillion, the government should have to increase their expenditure by $1.5 trillion.
Mountaineers Inc. sells its rock-climbing shoes worldwide. Mountaineers Inc. expects to sell 4,000 pairs of shoes for $165.00 each in January, and 2,000 pairs of shoes for $220.00 each in February. All sales are cash only. Prepare the sales budget for January and February. Mountaineers Inc. expects cost of goods sold to average 75 percent of sales revenue, and the company expects to sell 4,600 pairs of shoes in March for $240.00 each. Mountaineers Inc.’s target ending inventory is $18,000.00 plus 45 percent of the next month’s cost of goods sold. Use this information and the sales budget prepared to prepare Mountaineers Inc.’s inventory, purchases, and cost of goods sold budget for January and February.
Answer:
expected sales January, 4,000 pairs of shoes at $165 each = $660,000
expected sales February, 2,000 pairs of shoes at $220 = $440,000
expected COGS = 75% of expected revenue
expected sales March, 4,600 pairs of shoes at $240 = $1,104,000
ending inventory = $18,000 plus 45% of next month's COGS
Sales budgetMonth January February March
Units 4000 2000 4600
Price $165 $220 $240
Total sales $660,000 $440,000 $1,104,000
Inventory, Purchases and COGS Budget
January February March
cost of goods sold $495,000 $330,000 $828,000
+ desired ending inventory $166,500 $390,600 ?
Total merchandise required $661,500 $720,600 ?
- beginning inventory ($315,000) ($346,500) ($374,100)
budgeted purchases $346,500 $374,100 ?
"P16.8 (LO 5) (Computation of Basic and Diluted EPS) The information below pertains to Barkley Company for 2021. Net income for the year $1,200,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,000,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,000,000 Common stock, $10 par value 6,000,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 75,000 shares of common stock at $20 per share. Instructions "
a. The basic EPS for Barkley Company in 2021 is $0.24 per share.
b. The diluted EPS for Barkley Company in 2021 is $0.23 per share.
Part a: Compute basic earnings per share (EPS) for 2021.
Start with the net income: $1,200,000.
Subtract any preferred dividends: There are no preferred dividends mentioned in the information provided, so this value is 0.
Adjust for taxes: Multiply the net income by (1 - tax rate). In this case, (1 - 20%) = 0.8. Therefore, the adjusted net income is $1,200,000 * 0.8 = $960,000.
Divide the adjusted net income by the number of outstanding common shares: There are no changes mentioned in the number of outstanding common shares, so we can assume the number is the same as the total number of common shares listed, which is 4,000,000. Therefore, the basic EPS is $960,000 / 4,000,000 shares = $0.24 per share.
Part b: Compute diluted earnings per share (EPS) for 2021.
The adjusted net income, which is $960,000.
Consider potentially dilutive securities: These are securities that could potentially increase the number of outstanding common shares if converted. In this case, the convertible bonds and stock options are potentially dilutive.
Calculate the incremental shares from the convertible bonds: Each bond is convertible into 30 shares, and there are 2,000 bonds outstanding. Therefore, the potential incremental shares from the bonds are 2,000 bonds * 30 shares/bond = 60,000 shares.
Assess whether the conversion of convertible bonds is dilutive: Since the average market price of the common stock ($25 per share) is higher than the conversion price of the bonds ($1,000 per bond), the conversion would be dilutive. Therefore, we need to include the incremental shares from the bonds in the diluted EPS calculation.
Calculate the incremental shares from the stock options: The options are exercisable at $20 per share, and the average market price is $25 per share. This means it would be profitable to exercise the options. Therefore, we need to assume all options will be exercised, resulting in 75,000 additional shares.
Calculate the weighted average number of shares: Add the outstanding common shares, the incremental shares from the bonds, and the incremental shares from the options. This gives us 4,000,000 shares + 60,000 shares + 75,000 shares = 4,135,000 shares.
Divide the adjusted net income by the weighted average number of shares: This gives us the diluted EPS of $960,000 / 4,135,000 shares = $0.23 per share.
Weinreich Corporation produces and sells a single product. Data concerning that product appear below:
1.selling price per unit- $180 = 100% of sales
2.Variable expenses - 90 = 50% of sales
3.contribution margin- $90 = 50% of sales
The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
A. increase of $2,700
B. increase of $15,300
C. decrease of $18,000
D. decrease of $2,700
Answer :
Option (D): Decrease of $2,700
Explanation :
As per the data given in the question,
1) Net operating income without change:
1. Sales (2,000 units × $180) $360,000
2. Less: Variable expenses (2,000 units × $90) $180,000
3. Contribution ($36,000 - $180,000) $180,000
4. Less: Fixed cost $131,000
5. Net operating income ($180,000 - $131,000) $49,000
2) Net operating income with change:
1. Net operating income without change $49,000
2. Less: Advertising expenses to increase in sale $18,000
3. Add: Sales value for extra 170 units (170 × $180) $30,600
4. Less: Variable expenses for 170 units (170 × $90) $15,300
5. Net operating income after change $46,300
($49,000-$18,000+$30,600-$15,300)
From the above tables we can conclude, there is decrease of $2,700 which is not advisable.
A bank charges a fee called a(n) ______ charge for handling many checking accounts.
Answer:
The correct answer to the following question will be "Service charges".
Explanation:
Financial service charge cost seems to be the description of such an account where all amounts paid by that of the company to such an agency's checking accounts are kept.
Defining a service charge seems to be an extra service payment or fee that is in addition to the standard payment.An illustration of such a service cost is PayPal offering a cost for an individual utilizing their service to transfer money to the other.9. Mackenzie PLC is considering expanding a production line. The new equipment for the line will cost $255,000. In addition, the cost of delivery is $12,250 and there is an annual maintenance contract for $1,500. The new line is expected to generate cash flows for the next four years of 65,000; 98,000; 126,000; and 132,000. Mackenzie's discount rate for the project is 9 3/8%. The net present value of the project is closest to:
Answer:
Net Present Value = $59,632.78
Explanation:
The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.
NPV = PV of cash inflow - PV of cash outflow
Present value of cash inflow:
65,000 × (1.09375)^(-1) + 98000 ×(1.09375)^(-2)+ 126,000 ×(1.09375)^(-3)+ 132,000 × (1.09375)^(-4)= 326882.7792
PV of annual maintenance cost :
=1,500 × (1- 1.09375^(-4))/0.09375
=4819.84773
NPV = 26882.7792 - 4819.84773 - (255,000+12250)
= 59,632.78
24. What percentage of jobs are NOT advertised?
50%
80%
70%
40%
Answer:
70%
Explanation:
Most Jobs Are Not Published
But just sending out resumes, even hundreds of them, in response to ads probably won't help that much. The reason, Youngquist says: Most jobs aren't posted or advertised publicly.
Answer:
70% jobs are not advertised.
hope it helps!
Name three types of capital. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Physical capital Scientific capital Human capital Productive capital Social capital
Answer:
The three types of from the options provided include:
Physical capital Human capital Social capitalExplanation:
Physical capital is a factor of production consisting of tangible properties that a company owns such as machinery, real estate and any other asset that is used to produce goods.
Human capital refers to the value that manpower contributes to production. It includes the labor, knowledge, creativity, skills and competences contributed by skilled and unskilled labor to the production of goods and services.
Social capital is the value that networks, strategic partnerships and relationships brings to an organization. It is proven that social capital drives economic growth of any organization.
Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. Ramirez's fixed costs are $891,000. How many units of Q-Drive would be sold at the break-even point?
Answer:
Break-even point in units= 3,300 units
Explanation:
Giving the following information:
The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus).
Q-Drive has variable costs per unit of $90 and a selling price of $150.
Q-Drive Plus has variable costs per unit of $105 and a selling price of $195.
Ramirez's fixed costs are $891,000.
To calculate the break-even point in units, we need to use the following formula for the company as a whole:
Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio
Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin ratio= (0.3*150 + 0.7*195) - (0.3*90 + 0.7*105)
Weighted average contribution margin ratio= 81
Break-even point (units)= 891,000/81
Break-even point (units)= 11,000 units
Now, for Q-Drive:
Break-even point in units= 11,000*0.3= 3,300 units
The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. "How many units were transferred-out during the period
Answer:
Physical Flow units 12000
Equivalent Units Materials 11000
Equivalent units Conversion 15000
Explanation:
The Finishing Department
First-in, First-out (FIFO) Process Costing
Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Units Received 15000 100 100 15000 15000
+Ending WIP 2000 50 30 1000 600
Less Beg. Inv 5000 100 30 5000 600
Total units 12000 11000 15000
The units started and completed are transferred out units. The Beginning Work in Process is deducted to ensure first in first out. The units moved first in are transferred out first.
To calculate the number of units transferred-out during the period, you need to use the FIFO method and calculate equivalent units of production for materials and conversion costs for the beginning and ending work-in-process (WIP) inventories.
Explanation:The number of units transferred-out during the period can be calculated by subtracting the ending work-in-process (WIP) inventory from the sum of the beginning WIP inventory and units received, following the FIFO method. In this case:
Calculate the equivalent units of production for materials and conversion costs for the beginning and ending WIP inventories.Multiply the units received by the degree of completion for materials and conversion costs to obtain the equivalent units.Sum up the equivalent units of production for the beginning WIP inventory, units received, and the ending WIP inventory.Subtract the equivalent units of the ending WIP inventory from the sum.After performing these calculations, the number of units transferred-out during the period can be determined.
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The number at the bottom right of each supplier’s box shows the portion of Boeing’s costs in thelast year that went to that supplier. The number at the bottom right of each customer’s boxshows the portion of the customer’s capital expenditure (money spent in high value purchases)in the last year that went to Boeing. For which company shown was Boeing the primary plansupplier in the last year?
Answer:
both
United Continental with a capital expenditure of 60.68%Southwest Airlines with a capital expenditure of 51.38%Explanation:
Since United Continental's purchases of Boeing planes represent over 60% of their capital expenditures, this means that Boeing had to be the primary plane supplier. Even if the company purchased planes form other manufacturer, their purchases would not even be 40% of the company's purchases.
The same applies to Southwest Airlines, even though the purchases from Boeing are a little lower, they are still over 51%. This means the company could not have spent more money on purchasing planes from another company. The maximum purchase from another airplane manufacturer would have been less than 49% at most.
Besides the previous analysis, you must also consider that the company spends money on things besides airplanes, e.g. new training facilities, equipment, computer software, other vehicles, etc.
Boeing the primary plane supplier in the last year for both companies i.e United Continental and Southwest Airlines.
From the information given, United Continental had a capital expenditure of 60.68% while the capital expenditure of Southwest Airlines was 51.38%.
Since the purchases of the planes by United Continental's is more than 60% of their capital expenditures, then it simply means that Boeing is the primary plane supplier. Also, the purchases of the planes by Southwest Airlines is more than 51% of their capital expenditures, then it simply means that Boeing is the primary plane suppliers.In conclusion, Boeing is the primary plane supplier in the last year for both companies.
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Cheyenne Corp. had the following transactions during 2017: 1. Issued $212500 of par value common stock for cash. 2. Recorded and paid wages expense of $102000. 3. Acquired land by issuing common stock of par value $85000. 4. Declared and paid a cash dividend of $17000. 5. Sold a long-term investment (cost $5100) for cash of $5100. 6. Recorded cash sales of $680000. 7. Bought inventory for cash of $272000. 8. Acquired an investment in Zynga stock for cash of $35700. 9. Converted bonds payable to common stock in the amount of $850000. 10. Repaid a 6-year note payable in the amount of $374000. What is the net cash provided by investing activities
Answer:
($30,600)
Explanation:
Data provided as per the requirement of answer is shown below:-
Sold investment = $5,100
Acquired investment = $35,700
The computation of net cash provided by investing activities is shown below:-
Net cash provided by investing activities = Sold investment - Acquired investment
= $5,100 - $35,700
= ($30,600)
Therefore for computing the net cash provided by investing activities we simply applied the above formula.
Bramble Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data. Variable Costs Fixed Costs Indirect materials $11,300 Supervisory salaries $37,000 Indirect labor 10,800 Depreciation 6,000 Utilities 7,200 Property taxes and insurance 7,400 Maintenance 5,900 Maintenance 5,000 Actual variable costs were indirect materials $14,600, indirect labor $9,400, utilities $9,600, and maintenance $5,100. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,700. The actual activity level equaled the budgeted level. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.) BRAMBLE INC. Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ (b) Prepare a responsibility report for the first quarter. BRAMBLE INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2020 Difference Controllable Costs Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $
Answer and Explanation:
The preparation is presented below:
a. For manufacturing overhead flexible budget report is presented below:
Particulars Budget Actual Difference
Variable costs
Indirect Materials $11,300 $14,600 $3,300 U
Indirect labor $10,800 $9,400 $1,400 F
Utilities $7,200 $9,600 $2,400 U
Maintenance $5,900 $5,100 $800 F
Total variable costs $35,200 $38,700 $3,500 U
Fixed costs
Supervisory salaries $37,000 $37,000 0 N
Depreciation $6,000 $6,000 0 N
Prop.taxes & insurance $7,400 $8,700 $1,300 U
Maintenance $5,000 $5,000 0 N
total fixed costs $55,400 $56,700 $1,300 U
total costs $90,600 $95,400 $4,800 U
b. For Manufacturing overhead Responsibility Report
Particulars Budget Actual Difference
Controllable costs
Indirect materials $11,300 $14,600 $3,300 U
indirect labor $10,800 $9,400 $1,400 F
Utilities $7,200 $9,600 $2,400 U
Maintenance $10,900 $10,100 $800 F
Supervisory salaries $37,000 $37,000 0 N
total costs $77,200 $80,700 $3,500 U
The unfavorable variance is that variance in which the actual cost is greater than the budgeted variance and the favorable variance is that variance in which the actual cost is less than the budgeted variance