Explanation:
Boosts Employee Performance. ...
Improve Morale and Job Satisfaction. ...
Ensures Opportunities for Learning. ...
Opportunity to Identify Weaknesses. ...
Provide a Framework to Develop Strengths. ...
Encourages Innovation and Risk Acceptance. ...
Boosts Adherence to Quality Standards
McDarrel's records $500 of accrued salaries on December 31. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Demonstrate the required journal entry on January 3 by selecting from the choices below. (Check all that apply.) Multiple select question. Salaries payable will be credited for $500. Salaries expense would be debited for $3,500. Salaries payable will be debited for $500. Cash would be credited for $4,000. Wages expense will be debited for $4,000.
Answer:
Salaries payable will be debited for $500
Salaries expense would be debited for $3,500
Cash would be credited for $4,000
Explanation:
Based on the information given the Required journal entry for Jan 3rd will be:
Dr Salaries Payable $500
Dr Salaries expense $3,500
($4,000-$500)
Cr Cash $4,000
The potential decision to abandon a project has option value because: Group of answer choices abandonment can occur at one specific point in the future. a project may be worth more dead than alive. management is locked into a negative outcome. future demand may exceed expectations. the project may be worth more if its commencement is delayed.
Answer:
abandonment can occur at one specific point in the future.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
Hence, the potential decision to abandon a project has option value because abandonment can occur at one specific point in the future and no one wants a negative outcome from a project.
A manufacturing company accumulates the following data on variable overhead: Actual cost incurred: $61,000; Actual allocation base times the standard variable rate: $64,000; Applied variable overhead: $60,000. The variable overhead efficiency variance is:
Answer: $4000U
Explanation:
From the information given in the question, the variable overhead efficiency variance is the difference between the actual allocation base times the standard variable rate and the applied variable overhead. This will be:
= $64000 - $60000
= $4000U
Therefore, the variable overhead efficiency variance is $4000U
in your own opinion, what is the advantages and disadvantages of having a business website.
Answer:
There are several advantages and disadvantages to having a website for your business or limited company. In the modern age, more and more businesses are getting online. As I mentioned in a previous post, there were around 227,225,642 websites online in September 2010. If you don’t take your business onto the World Wide Web, you could miss out on potential customers, sales and profits. According to data collected by the Office for National Statistics – internet sales were up to £473million (a week) in August 2010 (Retail Sales Statistical Bulletin – August 2010). So having a website designed for your small business or limited company is just one important step towards getting a slice of the internet pie.
The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows:
Materials $208,000
Factory wages 265,000
Supervisory salaries 67,800
Depreciation of plant and equipment 35,000
Power and light 22,500
Insurance and property taxes 15,500
Maintenance 9,700
During March, the costs incurred in Department 6 of Cardinal Company were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property taxes, $14,400; and maintenance, $9,456.
Required:
Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March.
Answer:
Cardinal Company
Department 6
Budget Performance Report for the month of March
Budget Actual Variance
Materials $208,000 $204,000 $4,000 F
Factory wages 265,000 285,000 20,000 U
Supervisory salaries 67,800 63,600 4,200 F
Depreciation of plant and
equipment 35,000 35,000 0 None
Power and light 22,500 21,360 1,140 F
Insurance and property taxes 15,500 14,400 1,100 F
Maintenance 9,700 9,456 244 F
Total Expenses $623,500 $632,816 ($9,316) U
Explanation:
a) Data and Calculations:
Budget for the month of March:
Materials $208,000
Factory wages 265,000
Supervisory salaries 67,800
Depreciation of plant and
equipment 35,000
Power and light 22,500
Insurance and property taxes 15,500
Maintenance 9,700
Total Expenses $623,500
Actual Costs Incurred during March:
Materials $204,000
Factory wages 285,000
Supervisory salaries 63,600
Depreciation of plant and
equipment 35,000
Power and light 21,360
Insurance and property taxes 14,400
Maintenance 9,456
Total Expenses $632,816
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? percent b. What is the Herfindahl index for the hamburger industry in this town? c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = percent Herfindahl index =
Answer:
a= 75%
b= 1702
c= 94% , 4334
Special items are: Multiple Choice Significant transactions that are unusual and infrequent over which management has control. Significant transactions that are unusual or infrequent and are not within the control of management. Significant transactions that are unusual and infrequent and are not within the control of management. Significant transactions that are unusual or infrequent over which management has control.
Answer:
Significant transactions that are unusual or infrequent over which management has control.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, account payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
Hence, it is the field of accounting which typically involves specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
Similarly, managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analyzing, interpretation, and communication of financial information to managers for better decisions making and pursuit of the organization's goals.
In managerial accounting, special items are significant transactions that are unusual or infrequent over which management has control. Thus, it is a one-time large expense incurred by a business firm or organization and it is generally not expected to reoccur in the future.
You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 8% annual interest. The client wants to deposit an amount that will provide her with $1,003,500 when she retires. Currently, she has $301,400 in the account. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
How much additional money should she deposit now to provide her with $1,003,500 when she retires? (Round your answer to nearest whole dollar.)
Answer:
x = $240759.82559797761 rounded off to $240.759.83
Explanation:
To calculate the additional amount that is required to be invested today, we will use the formula for Future value of a cash flow.
FV = PV * (1+r)^t
Where,
FV and PV are future value and present value respectivelyr is the interest rate or rate of returnt is the time periodWe know the Future value that is the sum required and we know the r which is 8% and t which is 8 years. We know the partial PV which is 301400 and we need to calculate the other part of PV. Thus we can say that PV = 301400 + x
Solving the equation for x where x is the additional money that should be deposited today.
1003500 = (301400 + x) * (1+0.08)^8
1003500 / (1+0.08)^8 = (301400 + x)
542159.8255977329 = 301400 + x
542159.8255977329 - 301400 = x
x = $240759.82559797761 rounded off to $240.759.83
what is the current exchange rate?
The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly further and selling it for $51 per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $225,000.
Required:
Prepare an analysis showing whether Jensen should process the assemblies further.
Answer and Explanation:
The preparation of the analysis shows whether the assemblies should process further or not is presented below:
Differential revenue (38,000 units × ($51 - $44)) $266,000
Differential costs:
Direct material (38,000units × $2 per unit) ($76,000)
Direct labor (38,000units × $2 per unit) ($76,000)
Variable overhead (38,000units × $1 per unit) ($38,000)
Fixed costs ($160,000 - $225,000) ($65,000)
Additional income (loss) from processing further $11,000
Since the amount comes in positive so it should be processed further
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The following information was collected for the first year of manufacturing for Appliance Apps:
Direct Materials per Unit $2.25
Direct Labor per Unit $1.50
Variable Manufacturing Overhead per Unit $0.25
Variable Selling and Administration Expenses $1.75
Units Produced 40,000
Units Sold 36,000
Sales Price $12
Fixed Manufacturing Expenses $120,000
Fixed Selling and Administration Expenses $20,000
Required:
Prepare an income statement under variable costing method.
Answer:
Appliance Apps
Income statement under variable costing method.
Sales ($12 x 36,000) $432,000
Less Variable Cost of Sales ($144,000)
Contribution $288,000
Less Expenses :
Fixed Manufacturing Expenses $120,000
Fixed Selling and Administration Expenses $20,000
Variable Selling and Administration Expenses $63,000 ($203000)
Net Income $85000
Explanation:
Total Product Cost (Variable Manufacturing Cost Only)
Direct Materials per Unit $2.25
Direct Labor per Unit $1.50
Variable Manufacturing Overhead per Unit $0.25
Total $4.00
Cost of Sales = Product Cost x Units Sold
= $4.00 x 36,000
= $144,000
pestel analysis for security industry in uk
Explanation:
PESTEL analysis is an acronym for Political, Economic, Socio-cultural, Technological, Environmental, and Legislative, and it is probably one of the most well-known top-level battle-hardened business planning tools. It was simply PEST analysis when we first came across the tool, some 30 years ago: the EL was added along the way to make it more all-encompassing.
When should you use it?
PESTEL is most commonly used in what economists refer to as a "macroeconomic analysis," which simply means thinking about future plans - to you and me, business planning and strategy. It is one of the most well-known and battle-tested top-level business planning tools.
An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A second-hand system will cost $75,000. A new system with improved technology can decrease labor hours by 20% compared to the used system. The new system will cost $150,000 to purchase and install. Both systems have a useful life of five years. The market value of the used system is expected to be $20,000 in five years, and the market value of the new system is anticipated to be $50,000 in five years. Current maintenance activity will require the used system to be operated eight hours per day for 20 days per month. If labor costs $40 per hour and the MARR is 1% per month, which system should be recommended?
Answer:
The second hand machine should be chosen given that the NPV value is lower than that of the new system
Explanation:
cost of second hand system = $75,000
cost of new system = $150,000
New system can decrease labor hours by 20%
number of useful life ( for both systems ) = 5 years
market value of second hand system after 5 years = $20,000
market value of new system after 5 years = $50,000
Second hand system can operate for 8 hours/day for 20 days = 8*20 = 160 hours per month = 1920 hours per year
labor cost = $40 per hour
MARR = 1% per month
Determine the system that should be recommended
we have to calculate the NPV for both options
for Option 1 ( second hand system )
labor cost = 40 * 1920 = $76800
cost of purchase = $75,000
MARR = 12% p.a.
residual value = $20000
First step : calculate the PV of maintenance cost = $76800× PVAF(12%, 5 years) = $276864
Next : calculate the PV of residual value =$20000× PVF(12%, 5th year)
= $11340
NPV = (75000 + 276864 - 11340 ) = $340,524
for Option 2 ( New Machine )
Labor cost = ( 1920 × 0.8 )hours ×40 = $61440
cost of machine = $150000
Pv of labor cost = 61440×3.605 = $221491.20
Residual value = $50,000
Hence ; PV of residual value = 50000 × 0.567 = $28350
Finally calculate the NPV = (150000+221491.20-28350) = $343,141.20
Metlock, Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2020 through 2023, inclusive.
2015 2016 2017 2018
Income Statement Data
Sales revenue $131,770 (e) $111,819
Cost of goods sold (a) 38,162 36,026
Gross profit 92,208 81,083 (i)
Operating expenses 86,550 (f) 71,903
Net income (b) $4,774 (j)
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256 (l)
Additional Information
Purchases of inventory on account 35,210 (g) $32,708
Cash payments to suppliers (d) (h) 33,524
Required:
Compute the gross profit rate and the profit margin for each fiscal year.
Answer:
Metlock, Inc.
2020 2021 2022
Gross profit rate = 70% 68% 68%
Profit margin = $5,658 $4,774 $3,890
Percentage margin 4.3% 4% 3.5%
Explanation:
a) Data and Calculations:
2020 2021 2022 2023
Income Statement Data
Sales revenue $131,770 (e) $111,819
Cost of goods sold (a) 38,162 36,026
Gross profit 92,208 81,083 (i)
Operating expenses 86,550 (f) 71,903
Net income (b) $4,774 (j)
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256
Additional information:
Purchases of inventory
on account 35,210 (g) $32,708
Cash payments to
suppliers (d) (h) 33,524
2020 2021 2022 2023
Income Statement Data
Sales revenue $131,770 119,245 $111,819
Cost of goods sold 39,562 38,162 36,026
Gross profit 92,208 81,083 75,793
Operating expenses 86,550 76,309 71,903
Net income $5,658 $4,774 $3,890
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256
Additional information:
Purchases of inventory
on account 35,210 (g) $32,708
Cash payments to
suppliers 27,322 (h) 33,524
a) = $131,770 - $92,208 = $39,562
b) = $92,208 - 86,550 = $5,658
c) =
d) = $35,210 - 7,888 = $27,322
e) = $38,162 + 81,083 = $119,245
f = $81,083 - 4,774 = $76,309
i) = $111,819 - 36,036 = $75,793
j) = $75,793 - 71,903 = $3,890
2020 2021 2022
Gross profit rate = Gross profit/Sales * 100
Gross profit 92,208 81,083 75,793
Sales revenue $131,770 119,245 $111,819
Gross profit rate = 70% 68% 68%
Profit margin = $5,658 $4,774 $3,890
Percentage margin = Net Income/Sales * 100
4.3% 4% 3.5%
Looking back over the last ten years or so, what was changed in your workplace? What do you think will happen next in your work place 5 years from now?
As 2020 draws near, it’s hard not to reflect on the past decade- so much has changed in the 10 years that flew by. In 2010, those who even had a smartphone were carrying around an iPhone 4 or a BlackBerry OS 6.0 version.
While the illustrious BlackBerry has all but disappeared from the workplace of 2019, there has been plenty of technologies in its wake to replace it. Let’s take a look at how the workplace has changed, communication tools and otherwise, in the past decade.
1. Collaboration over competition
“So many things have happened in the last decade that have really accelerated this change from competition to collaboration,” said Ann Shoket, workplace thought leader and former Editor-In-Chief of Seventeen Magazine.
“So first of all this old idea that there was room at the table for one woman, and you would fight tooth or nail for that spot, so obviously there was a lot of competition, particularly among women.
“Then the next generation, Millennial women, came in and made more room at the table and brought their friends along with them. That was the shift toward collaboration.”
2. It’s an employee market, not an employer market
“Reflecting back on 2010 and what the economic circumstances were versus where we are at today, the competition for talent was very different in 2010 than as we enter 2020,” said Rhiannon Staples, the Chief Marketing Officer at Hibob.
Low unemployment rates today mean that job seekers have more options, and employees have more leverage in terms of what they can expect of their company due to the competition for top talent.
“It really is on businesses to help develop an environment, a culture, and perks that really draw the best talent in the market,” Staples said. “That’s really very different from where we were just 10 years ago.”
3. Push towards a more remote workforce
Anyone in the workforce 10 years ago won’t be shocked that the change in when and where we work made this list. Whereas in the past remote work was reserved for special situations, that kind of idea is now replaced by a lot more freedom of where you work and when you work, and that’s not just people who are entrepreneurs. This idea is something that everybody wants out of work, to have a more flexible time frame to be free from the office. This idea of freedom is such an important piece of where we are going at work.
“That kind of idea is now replaced by a lot more freedom of where you work and when you work, and that’s not just people who are entrepreneurs,” Shoket said. “This idea is something that everybody wants out of work, to have a more flexible time frame to be free from the office. This idea of freedom is such an important piece of where we are going at work.”
A Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of twenty ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
Day Weight (ounces)
Monday 23 22 23 24
Tuesday 23 21 19 21
Wednesday 20 19 20 21
Thursday 18 19 20 19
Friday 18 20 22 20
What are the upper and lower control limits for these data?
a. UCL = 22.644 LCL = 18.556
b. UCL = 22.700 LCL = 18.500
c. UCL = 22.755 LCL = 18.642
d. UCL = 21.814 LCL = 19.300
Answer:
a. UCL = 22.664 LCL = 18.556
Explanation:
The sample mean for the given data is :
( 23 + 20 + 19 + 20 + 21 ) / 5 = 20.6
Upper control limit is :
Sample mean + standard deviation
20.6 + 2 = 22.6
Lower Control Limit is :
Sample mean - Standard Deviation
20.6 - 2 = 18.6
When the U.S. dollar strengthens against other currencies, a. an MNC's U.S. sales will probably decrease. b. an MNC's exports denominated in U.S. dollars will probably increase. c. an MNC's interest owed on foreign funds borrowed will probably increase. d. an MNC's exports denominated in foreign currencies will probably increase. e. all of the abo
Answer:
A
Explanation:
Fore Farms reported a pretax operating loss of $210 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $10 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $20 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no temporary differences at the beginning of the year and none originating in 2021 other than those described above. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss in 2021. 2. What is the net operating loss reported in 2021 income statement
Answer:
Fore Farms
1. Journal Entry
Debit Net operating loss $180 million
Credit Loss Carryforward Relief $180 million
To record the income tax benefit of the net operating loss.
2. The net operating loss reported in 2021 income statement is $180 million.
Explanation:
a) Data and Calculations:
Enacted tax rate = 25%
2021 Reported pretax operating loss = $210 million
Less:
Penalty for EPA violation = 10 million
Loss contingency accrued
(temporary difference) = 20 million
Net pretax operating loss = $180 million
b) The net operating loss (NOL) suffered by Fore Farms, after adjusting non-allowable penalty for EPA violation and temporary differences, will be used to offset the company's tax payments in subsequent tax periods. This is an Internal Revenue Service (IRS) tax provision called a "loss carryforward." It allows some tax relief to Fore Farms for losing money in 2021.
Which of the following is NOT included on a cash flow statement?
a. collections from customers
b. payments to suppliers
c. cash tax payments
d. existing fixed assets such as machinery
Rockwood Industries has 100 million shares outstanding, a current share price of $25, and no debt. Rockwood's management believes that the shares are under-priced, and that the true value is $30 per share. Rockwood plans to pay $250 million in cash to its shareholders by repurchasing shares. Management expects that very soon new information will come out that will cause investors to revise their opinion of the firm and agree with Rockwood's assessment of the firm's true value. Assume that Rockwood is not able to repurchase shares prior to the market becoming aware of the new information regarding Rockwood's true value. If Rockwood repurchases the shares following the release of the new information, then the number of shares outstanding following the repurchase is closest to:_______
A. $30.00
B. $31.50
C. 28.75
D. $30.60
Answer:
D. $30.60
Explanation:
A step by step approach is provided below to determine the shares value after repurchase.
Number of Shares Repurchased = $250 million / $25 per share
Number of Shares Repurchased = 10 million shares
The total number of shares outstanding after repurchase are 90 Million (100 million - 10 million).
Value of the firm before repurchase = $30 x 100 million shares = $3,000 million
Value of the firm after repurchase = $3,000 million - $250 million = $2,750 million
Price per share after repurchase = $2,750 million / 90 million shares = $30.56 per share
Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10.
Further assume Sanmina-SCI offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each.
If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year.
In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated.
Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.
(Use a negative sign with your answer, if appropriate.)
Answer:
The net benefit is -$26,000
Explanation:
Given the above information,
The total cost of manufacturing 12,000 circuit boards
= 12,000 × $34
= $408,000
Total purchase price
= 12,000 × $34
= $408,000
Fixed overhead cost applied
= 12,000 × $6
= $72,000
The rental income = $46,000
Outsourcing cost
= Total purchase price + Fixed overhead cost applied - Rental income
= $408,000 + $72,000 - $46,000
= $434,000
Therefore, Net benefit
= Total cost of manufacturing - Outsourcing cost
=$408,000 - $434,000
= -$26,000
You have decided to buy a used car. The dealer has offered you two options: (FV of S1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
a. Pay $540 per month for 25 months and an additional $10,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%.
b. Make a one-time payment of $16,638, due when you purchase the car.
1-a. Determine how much cash the dealer would charge in option (a). (Round your final answer to nearest whole dollar.) Present value
1-b. In present value terms, which offer is clearly a better deal?
a. Option a
b. Option b
c. The present values of the options are nearly the same
Answer:
1-a.
in order to determine the present value of option a we can look for the PVIFA (annuity factor) for 24% / 12 = 2% monthly rate and 25 payments.
PVIFA = 19.523
Present value of the 25 payments = $540 x 19.523 = $10,542.42
+
Present value of final payment = $10,000 / (1 + 24%)²⁵/¹² = $6,388.10
PV = $16,930.52
Present value of option b = $16,638
1-b.
b. option b (lower present value)Joe signed a listing agreement with Marisa. A week later, Marisa’s co-worker, Tina, showed Joe a property that he’s interested in buying once his home sells. A week after that, Ross submitted an offer on Joe’s property on behalf of his buyer client. Who is Joe’s agent?
Answer:
Explanation:
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Nicholas is the production manager for a manufacturing firm. He has two supervisors who are experiencing conflict with each other based upon personality differences. Nicholas should have held a meeting last week to discuss next year's budget, but cancelled it because the two supervisors had a verbal confrontation on the shop floor the previous day. What conflict handling style is Nicholas demonstrating
Answer:
Avoidance
Explanation:
Conflict or disagreement usually occurs when individuals or members of a group engage in an expressed struggle that hinders a task accomplishment. This occurs mainly due to the real and perceived differences that exist among individuals or members of a group.
Communication
Simply deals with how individuals coordinate actions and achieve goals. It is usually refered to as the process by which information is exchanged between individuals via a common system such as symbols, signs, or behavior. People communicate differently and when you don't understand each other ways, attitude or method of communication, conflict is bound to occur.
Avoiding conflict-handling style
This is a type of conflict handling style that is generally of little/low concern for meeting the needs of both yourself and your group members. It is the act of deliberately ignoring or withdrawing yourself and hopingthe problem will go away and letting others to handle it. It is only useful when facing trivial/temporary issues, no chance to get what you want, when others can, when people need to cool down/get more information etc. But it usually makes other people perceive you as uncaring and a conflict simmers.
On January 1, 2020, Blue Inc. had cash and common stock of $62,340. At that date, the company had no other asset, liability, or equity balances. On January 2, 2020, it purchased for cash $22,990 of debt securities that it classified as available-for-sale. It received interest of $4,480 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $5,100 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020).
Answer:
(a) Net income = $3,000
(b) Comprehensive income = $7,000
(c) Other comprehensive income = $4,000
(d) Accumulated other comprehensive income = $4,000
Explanation:
This question is based on multi-step income statement. Therefore, some of the elements of the multi-step income statement are employed in answering this question.
(a) net income
This can be calculated as follows:
Net income = Operating income + Total other income and expense – Tax expense ………… (1)
Where, based on information in the question, we have:
Operating income = Not available = 0
Total other income and expense = Interest income = $3,000
Tax expense = Not available = 0
Substituting the values into equation (1), we have:
Net income = 0 + $3,000 – 0 = $3,000
(b) comprehensive income
This can be calculated as follows:
Comprehensive income = Net income + Other comprehensive income …... (2)
Where:
Net income = $3,000
Other comprehensive income = Unrealized holding gain on securities = $4,000
Substituting the values into equation (2), we have:
Comprehensive income = $3,000 + $4,000 = $7,000
(c) other comprehensive income
As already stated in part (b) above, we have:
Other comprehensive income = Unrealized holding gain on securities = $4,000
(d) accumulated other comprehensive income (end of 2020).
As there is no other income from the question, this implies that:
Accumulated other comprehensive income = Unrealized holding gain on securities = $4,000
LYFT IPO was issued at $72/share. Before the IPO, Lyft had 240 million class A shares outstanding and wanted to issue additional 30 million class A shares. On top of that, Lyft gave its underwriters options to purchase another 5 million shares at $72 each. When Lyft stock price fell below the IPO price of $72, to support the stock price, up to how many shares the underwriters could buy from the open market without losing money
Answer: 5 million shares
Explanation:
In order to avoid losses, they can only buy the same amount of shares that they can receive in the options agreement with Lyft.
If they were to buy more than 5 million shares from the open market, they would incur losses because they would not be able to replace these shares with the ones that they can buy from Lyft as a result of their options aggrement.
In a free enterprise system, consumers choose their occupations and decide where
to live, where to shop, and where to buy.
True or False
Answer:
true
Explanation:
I think the answer is true
Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200 to access the mine, which is estimated to hold 2,100,000 tons of ore. 235,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $420,000. Calculate the depletion expense from the information given. 1.
Answer:
$1,500,000
Explanation:
Step 1 : Determine depletion rate
Depletion rate = $3.57
Step 2 : Depletion expense
Corazon Company purchased an asset with a list price of $14,000. Corazon paid $500 of transportation in cost, $800 to train an employee to operate the equipment, and $200 to insure the asset against theft after it has been setup in the factory. The asset was purchased under terms 1/20/n30 and Corazon paid for the asset within the discount period. Based on this information, Corazon would capitalize the asset on its books at:_______
a. $14,000.
b. $14,660.
c. $15,160.
d. $14,800.
Answer:
c. $15,160.
Explanation:
The computation of the amount that should be capitalized is shown below:
= Purchase price + transportation + training cost - discount
= $14,000 + $500 + $800 - 1% of $14,000
= $14,000 + $500 + $800 - $140
= $15,160
Hence, the amount that should be capitalized is $15,160
Therefore the option c is correct
We simply applied the above formula