Answer:
made officers of publicly traded firms personally responsible for the firm's financial statements
Explanation:
The Sarbanes-Oxley Act, due to corporate fraud, was created to restore investor confidence in financial markets and to fill loopholes in publicly traded companies.The law created strong audit committees for companies that traded publicly and made officials (companies) personally responsible for the accuracy of financial statements.aSkysong, Inc.'s net income for the current year was $394000. Depreciation was $51000. Accounts receivable and inventories decreased by $16000 and $26000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2000 and $13000. Equipment was sold at a gain of $7400. How much cash was provided by operating activities
Answer:
Skysong, Inc.
Cash provided by operating activities =
$502,000
Explanation:
a) Data and Calculations:
Net income = $394,000
Depreciation 51,000
operating cash $445,000
Net working capital:
Accounts receivable $16,000
Inventory 26,000
Prepaid expenses 2,000
Salaries payable 13,000 57,000
Net cash from operating $502,000
b) The operating activities section of Skysong's cash flows statement depicts the ability of the company to generate cash from its main business activities. The net cash from operating activities is determined by adjusting its net income with non-cash flows (e.g. depreciation expenses) and working capital changes. A decrease in the current assets represents a source of operating cash, just as an increase in the current liabilities also represents a source of operating cash.
Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year. Required: What is the gross-up amount for each of the following employees
Answer:
The gross up amount for each employee is $4,500.
Explanation:
Social security wage base is a amount of tax on the salary which is used as a social security at the old age. The amount is determined based on a person's salary. The employees will have no deduction from their salary as they do are not eligible for social security wage base. The year end bonus will be the gross which is paid to the employees.
Beachballs, Inc., expects abnormally high earnings for the next three years due to the forecast of unusually hot summers. After the 3-year period, their growth will level off to its normal rate of 6%. Dividends and earnings are expected to grow at 20% for years 1 and 2 and 15% in year 3. The last dividend paid was $1.00. If an investor requires a 10% return on Beachballs, the price she is willing to pay for the stock is closest to:
Answer: $36.50
Explanation:
The price she will be willing to be paid according to the Dividend Discount model is calculated by finding the present value of the future dividends and the terminal value.
Dividend year 1 = 1 * (1 + 20%) = $1.20
Dividend year 2 = 1.20 * (1 + 20%) = $1.44
Dividend year 3 = 1.44 * (1 + 15%) = $1.656
Terminal value = Dividend in year 4 / (required return - growth rate)
= (1.656 * (1 + 6%)) / ( 10% - 6%)
= $43.884
[tex]Price = \frac{1.2}{(1 + 0.10)} + \frac{1.44}{(1 + 0.10)^{2} } + \frac{1.656}{(1 + 0.10)^{3} } + \frac{43.884}{(1 + 0.10)^{3} }\\\\= 36.4959\\\\= 36.50[/tex]
= $36.50
A merchant plans to sell two models of home computers at costs of $250 and $400, respectively. The $250 model yields a profit of $45 and the $400 model yields a profit of $50. The merchant estimates that the total monthly demand will not exceed 250 units. Find the number of units of each model that should be stocked in order to maximize profit. Assume that the merchant does not want to invest more than $70,000 in computer inventory. (See Exercise 21 in Section 9.2.)
Answer:
That is there is maximum profit when 250 units of $250 model computer and 50 units of $400 model computer is stocked.
Explanation:
Let x represent the number of $250 model and let y represent the number of $400 model. Since the total monthly demand will not exceed 250 units, hence:
x + y < 250 (1)
Also the merchant does not want to invest more than $70,000, hence:
250x + 400y < 70000 (2)
x, y ≥ 0
Plotting the equations using geogebra online graphing tool. The solution to the problem is at (0,0), (200, 50), (250,0), (0, 175).
The profit equation is:
Profit = 45x + 50y
At (0,0); Profit = 45(0) + 50(0) = 0
At (250,0); Profit = 45(250) + 50(0) = $11250
At (0,175); Profit = 45(0) + 50(175) = 8750
At (200,50); Profit = 45(200) + 50(50) = $11500
Therefore the maximum profit is at (200, 50). That is there is maximum profit when 250 units of $250 model computer and 50 units of $400 model computer is stocked.
Answer both parts of the following question. a. The San Francisco Chronicle reported that the toll on the Golden Gate Bridge was raised from $2 to $3. Following the toll increase, traffic fell by 5 percent. Based on this information, calculate the arc price elasticity of demand. Is demand elastic or inelastic
Answer:
The answer is "0.1".
Explanation:
Formula:
[tex]\text{Elasticity}= \frac{\% \text{volume changes in demand}}{ \% \text{price rise}}[/tex]
Calculating the value of price percent:
[tex]= \frac{(3-2)}{2} \times 100 \\\\= \frac{1}{2} \times 100 \\\\= \frac{100}{2} \\\\=50 \%[/tex]
Calculating the value of quantity change: [tex]= -5 \%[/tex]
Calculating the value of elasticity:
[tex]= \frac{-5}{50} \\\\ = \frac{-1}{10} \\\\= -0.1[/tex]
Through this convention, the environmental signal is decreased and elasticity =0.1 is achieved until conductivity. Whose comparatively in elasticity is not as high as 1.
What is 1.
2.
3.
4.
5.
6.
?
The €/$ spot exchange rate is €1.50/$ and the 120 day forward exchange rate is €1.45/$. The forward premium (discount) is Group of answer choices the dollar is trading at an 8% premium to the euro for delivery in 120 days. the dollar is trading at a 5% premium to the Swiss franc for delivery in 120 days. the dollar is trading at a 10% discount to the euro for delivery in 120 days. the dollar is trading at a 5% discount to the euro for delivery in 120 days.
Answer:
The forward premium (discount) is:
the dollar is trading at a 10% discount to the euro for delivery in 120 days.
Explanation:
a) Data and Calculations:
Spot exchange rate = €1.50/$
120 day forward exchange rate = €1.45/$
When the forward rate is less than the spot rate, the means that the currency is trading at a discount in the forward market.
The formula for calculating the forward premium or discount is:
= (Forward Rate Minus Spot Rate)/Forward Rate * 360/120
= (€1.45 - €1.50)/€1.45 * 360/120
= €-0.05/€1.45 * 3
= €-0.03448 * 3 = -10.3%
b) The forward premium occurs when the forward exchange rate is higher than the spot exchange rate. The forward discount occurs when the forward exchange rate is lower than the spot exchange rate. Forward premium or discount is normally expressed as the annualized percentage of the difference, using 360 days.
Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land improvements are appraised at $73,500; and a building is appraised at $171,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer and Explanation:
a. The allocation of the total cost among the three assets is given below:
(a) (b) (a × b)
Appraise value Total appraised Total cost of Apportioned
value cost
Percentage acquisition
Land $245,000 50% $342,225 $171,112.50
Land
improvements $73,500 15% $342,225 $51,333.75
Building $171,500 35% $342,225 $119,778.75
Total $490,000
b. The journal entry to record the purchase is given below:
Land $171,112.50
Land improvements $51,333.75
Building $119,778.75
To Cash $342,225
(To record the purchase)
Here the asset is debited as it rises the assets and cash is credited as it reduced the assets
Based on past experience, Maas Corp. (a U.S.-based company) expects to purchase raw materials from a foreign supplier at a cost of 1,000,000 francs on March 15, 2021. To hedge this forecasted transaction, on December 15, 2020, the company acquires a call option to purchase 1,000,000 francs in three months. Maas selects a strike price of $0.58 per franc when the spot rate is $0.58 and pays a premium of $0.005 per franc. The spot rate increases to $0.584 at December 31, 2020, causing the fair value of the option to increase to $7,500. By March 15, 2021, when the raw materials are purchased, the spot rate has climbed to $0.59, resulting in a fair value for the option of $10,000. The raw materials are used in assembling finished products, which are sold by December 31, 2021, when Maas prepares its annual financial statements. Prepare all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials. What is the overall impact on net income over the two accounting periods
Answer:
A. 15-Dec-20
Dr Foreign Currency Option $5,000
Cr Cash $5,000
2. 15-Dec-20 No Journal Entry Required
3 31-Dec-20 Dr Foreign Currency Option
$4,000
Cr To Accumulated - Other Comrehensive Income $4,000
4 31-Dec-20 Dr Option Expense (AOCI) $1,500
Cr To Foreign currency option $1,500
5 15-Mar-21 Dr Foreign Currency Option $6,000
Cr To Accumulated - Other Comrehensive Income $6,000
6 15-Mar-21 Dr Option Expense (AOCI) $3,500
Cr To Foreign currency option $3,500
7 15-Mar-21 Cash A/c $10,000
Cr To Foreign currency option $10,000
8 15-Mar-21 Dr Raw material inventory $590,000
Cr To Cash $590,000
9 15-Mar-21 Dr Accumulated - Other Comprehensive Income $6,000
Cr To Gain on sale of Option (Income statement) $6,000
b. Impact on net income in 2020= $2,500
Impact on net income in 2021 = $4,500
Explanation:
A. Preparation of all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials
15-Dec-20
Dr Foreign Currency Option Dr (1,000,000*0.005) $5,000
Cr To Cash $5,000
(Being call option purchased to acquire 1000000 marks at $0.005 per mark)
2 15-Dec-20 No Journal Entry Required
3 31-Dec-20 Dr Foreign Currency Option
[($0.584 - 0.58)*1000000] $4,000
Cr To Accumulated - Other Comrehensive Income $4,000
(Being adjustment of increase in fair value of option)
4 31-Dec-20 Dr Option Expense (AOCI) ($4,000 + $5,000 - $7,500) $1,500
Cr To Foreign currency option $1,500
(Being time value reduction of foreign currency option)
5 15-Mar-21 Dr Foreign Currency Option [(0.59 - 0.584)*1000000] $6,000
Cr To Accumulated - Other Comrehensive Income $6,000
(Being adjustment of increase in fair value of option)
6 15-Mar-21 Dr Option Expense (AOCI) ($7,500 + $6,000 - $10,000) $3,500
Cr To Foreign currency option $3,500
(Being time value reduction of foreign currency option)
7 15-Mar-21 Cash A/c $10,000
Cr To Foreign currency option $10,000
(Being sale of foreign currency option)
8 15-Mar-21 Dr Raw material inventory $590,000
Cr To Cash (1000000*0.59) $590,000
(To record purchase of raw material)
9 15-Mar-21 Dr Accumulated - Other Comprehensive Income $6,000
Cr To Gain on sale of Option (Income statement) $6,000
($4,500+$2,500)
(Being gain on option realzied and transferred to statement of comprehensive income)
b. Calculation for What is the overall impact
Impact on net income in 2020 = $4,000 - 1,500 = $2,500
Impact on net income in 2021 = $6,000 - $1,500 = $4,500
A company purchased a new delivery van at a cost of $46,000 on July 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $3,400. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?
Answer:
The amount of depreciation expense that will be recorded for the van during the first year ended December 31 is $5,325.
Explanation:
Since the company uses the straight-line method of depreciation, the annual depreciation expenses can first be calculated using the following formula:
Annual depreciation expense = (Cost of the asset - Salvage value) / Useful life ............ (1)
Where;
Cost of the asset = $46,000
Salvage value = $3,400
Useful life = 4
Substituting the values into equation (1), we have:
Annual depreciation expense = ($46,000 - $3,400) / 4
Annual depreciation expense = $10,650
Since July 1 to December 31 is just half of the year, the amount of depreciation expense that will be recorded for the van during the first year ended December 31 is the halve of the annual depreciation expense that can be calculated as follows:
Depreciation expense to be recorded = Annual depreciation expense / 2 = $10,650 / 2 = $5,325
Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed €10 million payable in one year. The money market interest rates and foreign exchange rates are given as follows: Picture Assume that Boeing sells a currency forward contract of €10 million for delivery in one year, in exchange for a predetermined amount of U.S. dollar. Which of the following is (or are) true? On the maturity date of the contract Boeing will: (i) have to deliver €10 million to the bank (the counterparty of the forward contract) (ii) take delivery of $14.6 million (iii) have a zero net euro exposure (iv) have a profit, or a loss, depending on the future changes in the dollar-euro exchange rate, from this German (euro currency zone) sale Group of answer choices (i) and (iv) (ii) and (iv) (ii), (iii), and (iv) (i), (ii), and (iii)
Answer:
All Choices (i) (ii) and (iii) except (iv) are correct.
Explanation:
Solution:
Choices (i) (ii) and (iii) are correct in this question.
As we know that, it is a forward contract at the time of maturity so, Boeing 747 will have to deliver 10 million euros to the bank as per the forward contract obligation (fulfills the choice (i)). Furthermore, with forward currency, after selling 10 million euro worth of contract, Boeing 747 will take delivery at 14.6 million dollars which is in US dollars as currency exchange (fulfills the choice (ii)). Hence, after maturity it will not have any exposure to euro (fulfills the choice (iii)).
Hence, All Choices (i) (ii) and (iii) except (iv) are correct.
The present value of a zero-interest-bearing note given for property, goods, or services should be measured by A : using the prime interest rate to discount the note. B : the book value of the property on the seller's books the interest rate on similar notes being offered in the market place for similar property, goods, or services. C : the fair value of the property, goods, or services or by an amount that reasonably approximates the fair value of the note. D : using a negotiated interest rate between the issuer of the note and the owner of the property, goods, or services to discount the note.
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity Components Changeover $ 627,450 Number of batches 890 Machining 379,155 Machine hours 8,050 Setups 108,000 Number of setups 60 $ 1,114,605 Finishing Welding $ 220,580 Welding hours 4,100 Inspecting 254,200 Number of inspections 820 Rework 47,200 Rework orders 160 $ 521,980 Support Purchasing $ 158,600 Purchase orders 488 Providing space 30,900 Number of units 8,400 Providing utilities 126,180 Number of units 8,400 $ 315,680 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,800 5,600 Welding hours 800 3,300 Batches 445 445 Number of inspections 510 310 Machine hours 2,750 5,300 Setups 30 30 Rework orders 90 70 Purchase orders 325 163 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $200 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $515.95 and the market price for Model 212 is $303.34, determine the profit or loss per unit for each model.
Answer:
Way Cool
1. Overhead Cost per unit for each product line:
Model 145 Model 212
Overhead cost per unit $434.97 $457.59
2. Total cost per unit for each product line:
Model 145 Model 212
Total cost per unit $634.97 $569.59
3. The profit or loss per unit for each model:
Model 145 Model 212
Market price 515.95 303.34
Loss per unit $119.02 $266.25
Explanation:
a) Data and Calculations:
Process Activity Overheads Driver Quantity Components O/H rates
Changeover $ 627,450 Number of batches 890 $705
Machining 379,155 Machine hours 8,050 $47.10
Setups 108,000 Number of setups 60 $1,800
Total $ 1,114,605
Finishing
Welding $ 220,580 Welding hours 4,100 $538
Inspecting 254,200 Number of inspections 820 $310
Rework 47,200 Rework orders 160 $295
Total $ 521,980
Support Purchasing $ 158,600 Purchase orders 488 $325
Providing space 30,900 Number of units 8,400 $3.68
Providing utilities 126,180 Number of units 8,400 $15.02
Total $ 315,680
Additional production information concerning its two product lines follows.
Model 145 Model 212
Units produced 2,800 5,600
Welding hours 800 3,300
Batches 445 445
Number of inspections 510 310
Machine hours 2,750 5,300
Setups 30 30
Rework orders 90 70
Purchase orders 325 163
Model 145 Model 212
Units produced 2,800 5,600
Welding hours $430,400 (800*$538) $1,775,400 (3,300 * $538)
Batches 313,725 (445*$705) 313,725 (445*$705)
Number of inspections 158,100 (510*$310) 96,100 (310*$310)
Machine hours 129,525 (2,750*$47.10) 249,630 (5,300*$47.10)
Setups 54,000 (30*$1,800) 54,000 (30*$1,800)
Rework orders 26,550 (90*$295) 20,650 (70*$295)
Purchase orders 105,625 (325*$325) 52,975 (163*$325)
Total overhead costs $1,217,925 $2,562,480
Units produced 2,800 5,600
Overhead cost per unit $434.97 $457.59
Direct labor and materials 200.00 112.00
Total cost per unit $634.97 $569.59
Market price 515.95 303.34
Loss per unit $119.02 $266.25
The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $295 each. The company has a 30% income tax rate. Variable production costs Plastic for casing $ 115,700 Wages of assembly workers 404,950 Drum stands 155,750 Variable selling costs Sales commissions 106,800 Fixed manufacturing costs Taxes on factory 14,500 Factory maintenance 29,000 Factory machinery depreciation 89,000 Fixed selling and administrative costs Lease of equipment for sales staff 29,000 Accounting staff salaries 79,000 Administrative management salaries 159,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio.
Answer:
See below
Explanation:
1. Contribution margin income statement
Sales (4,450 × $295)
$1,312,750
Less: Variable costs
Plastic for casting
$115,700
Wages
$404,950
Drum stand
$155,750
Variable selling
$106,800
Contribution
$529,550
Less : Fixed costs
Taxes on factory
$14,500
Factory Maintenance
$29,000
Depreciation
$89,000
Lease of equipment
$29,000
Accounting staff salaries
$79,000
Admin management salaries
$159,000
Profit before tax
$130,050
Less :
Tax at 30%
$39,015
Profit after tax
$91,035
2. Contribution margin per unit
Contribution margin per unit = Total contribution / Number of units
Contribution margin per unit = $529,550 / 4,450
Contribution margin per unit = $119 per unit
•Contribution margin ratio
= Contribution margin per unit / Unit cost of drum
= $119 / $295
Contribution margin ratio = 40.34%
In order for the economy to be strong, individuals must
a. produce goods and pay workers
b. provide labor and pay
workers
C.
produce goods and buy goods
d. provide labor and buy goods
Answer:
B
Explanation:
I took the test
The human resource department (HR) of Woodworkers, a furniture manufacturing firm, takes the time and effort
to identify and attract the right type of skilled employees required to manufacture premium furniture. It also trains the employees extensively so that they gain job-related knowledge. Moreover, it has established monthly reward systems so that the employees feel appreciated for their hard work. In this scenario, the activities undertaken by the HR department of Woodworkers align with the human resource management goal of _____.
a. adhering to legal business guidelines
b. complying with social obligations
c. creating an ethnocentric work environment
d. enhancing productivity and quality Management
Answer:
The answer is "Option d".
Explanation:
The productivity and quality control rise in connection with customer satisfaction, in which productivity is the relationship between the number of inputs and outputs, and it is necessary to produce a service is a productivity, and the quality is the calculation, that how flawless a material changes steel production quality or function may reduce product quality.
These activities carried out by the Woodworkers Human resources department throughout the scenario fit with the management objective of increasing productivity and quality control.
Please answer !!! For a lot of points
i think B is the answer,but ask another person too!
.
and tnx for points too :)
Answer:
thanks for points
Explanation:
he balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 13% bonds having a face amount of $92.0 million. The bonds had been issued in 2013 and had a remaining discount of $5.0 million at December 31, 2020. On January 1, 2021, Indian River Electronics called the bonds before their scheduled maturity at the call price of 103. Required:Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021.
Answer:
Dr Bonds Payable 92,000,000
Dr Loss on early existing 7,760,000
Cr Discount on Bonds Payable 5,000,000
Cr Cash 94,760,000
Explanation:
Preparation of the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021
Based on the information given the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2021 will be :
Dr Bonds Payable 92,000,000
Dr Loss on early existing 7,760,000
Cr Discount on Bonds Payable 5,000,000
Cr Cash 94,760,000
(103%*92m)
Calculation for Loss on early existing
Loss on early existing=[(94,760,000 + 5,000,000)- 92,000,000]
Loss on early existing= 99,760,000- 92,000,000
Loss on early existing=7,760,000
One year ago, Deltona Motor Parts deposited $17,500 in an investment account for the purpose of buying new equipment three years from today. Today, it is adding another $21,000 to this account. The company plans on making a final deposit of $13,000 to the account one year from today. How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest
Answer:
$58,445.13
Explanation:
Calculation for How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest
Using this formula
FV= PV*(1+i)^n
Let plug in the formula
First deposit= 17,500*(1.055^4)
First deposit= $19,316.73
Second deposit=21 ,000*(1.055^3)
Second deposit= $24,659.07
Third deposit= 13,000*(1.055^2)=
Third deposit=$14,469.33
Total= $58,445.13
Therefore How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest is $58,445.13
Sunland Company took a physical inventory on December 31 and determined that goods costing $190,500 were on hand. Not included in the physical count were $29,000 of goods purchased from Bramble Corp., FOB, shipping point, and $22,000 of goods sold to Vaughn Manufacturing for $32,000, FOB destination. Both the Bramble purchase and the Vaughn sale were in transit at year-end.
What amount should Sunland report as its December 31 inventory?
Answer:
$241,500
Explanation:
Calculation for What amount should Sunland report as its December 31 inventory
December 31 inventory per physical count $190,500
Add Goods-in-transit purchased FOB shipping point $29,000
Add Goods-in-transit sold FOB destination $22,000
December 31 Inventory $241,500
($190,500 + $29,000 + $22,000 = $241,500)
Therefore What amount should Sunland report as its December 31 inventory is $241,500
Classify the following cash flows as either operating, investing, or financing activities assume indirect method. 32 (8 01:40:41
1. Received cash from long-term debt issuance.
2. Paid long-term debt with cash.
3. Received cash from short-term debt issuance.
4. Issued common stock for cash.
5. Paid cash for wages and salaries.
6. Received cash interest on a note.
7. Paid cash for property taxes on building.
8. Paid cash for utilities.
9. Sold stock investments for cash.
10. Received cash from sale of equipment.
Answer:
1. Received cash from long-term debt issuance.
Classification: Financing activities
2. Paid long-term debt with cash.
Classification: Financing activities
3. Received cash from short-term debt issuance.
Classification: Financing activities/Operating activities
4. Issued common stock for cash.
Classification: Financing activities
5. Paid cash for wages and salaries.
Classification: Operating activities
6. Received cash interest on a note.
Classification: Operating activities
7. Paid cash for property taxes on building.
Classification: Operating activities
8. Paid cash for utilities.
Classification: Operating activities
9. Sold stock investments for cash.
Classification: Investment activities / Finance activities
10. Received cash from sale of equipment.
Classification: Investment activities
Entries into T Accounts and Trial Balance Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice: Transferred cash from a personal bank account to an account to be used for the business, $53,500. Paid October rent for office and workroom, $5,400. Purchased used automobile for $35,000, paying $8,000 cash and giving a note payable for the remainder. Purchased office and computer equipment on account, $10,700. Paid cash for supplies, $2,570. Paid cash for annual insurance policies, $3,600. Received cash from client for plans delivered, $13,400. Paid cash for miscellaneous expenses, $1,450. Paid cash to creditors on account, $3,100. Paid $430 on note payable. Received invoice for blueprint service, due in November, $1,800. Recorded fees earned on plans delivered, payment to be received in November, $9,300. Paid salary of assistants, $2,800. Paid gas, oil, and repairs on automobile for October, $700.
Your company manufactures and sells a variety of personal care products such as hair dryers and curling irons. Every hair dryer is properly labeled and contains safety precautions against misuse. Patrick purchases an SF9000 hair dryer from your company website. After a month of use where the hair dryer functions properly, Patrick accidentally drops it in water causing him an electric shock. Patrick sues your company for breach of the implied warranty of merchantability. Discuss whether the implied warranty of merchantability exists for this product and whether it has been violated in this situation.
Answer:
Product Implied Warranty
According to the Uniform Commercial Code, a product warranty guarantees that a product will work when used for its intended purposes. There are two key types of implied warranties: merchantability and fitness. The implied warranty of merchantability states that a product will meet reasonable expectations of the buyer. The implied warranty of fitness means that the product will meet the buyer's intended use.
Based on the above, we can conclude that the implied warranty of merchantability actually exists for the hair dryer. However, Patrick clearly violated it in this situation through the accident of dropping it in water.
Having thus violated the warranty, he cannot reasonably recover any damages from the company.
Explanation:
a) Facts of the case:
1. Every hair dryer is properly labeled and contains safety precautions against misuse.
2. The SF9000 hair dryer that Patrick purchased functioned properly for a month.
3. Patrick accidentally drops the hair dryer in water, causing him an electric shock.
4. Patrick sues for breach of the implied warranty of merchantability.
In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $20,000 and Job 11 $30,000. On March 31, Job 10 is sold to the customer for $35,000 in cash.Journalize the entries for the completion of the two jobs and the sale of Job 10.Date Account Titles and Explanation Debit CreditMar. 31 31 31
Answer:
Mar. 31
Dr Finished goods inventory $50,000
(20,000+30,00)
Cr Work in process inventory $50,000
31 Dr Cash $35,000
Cr Sales revenue $35,000
31 Dr Cost of goods sold $30,000
Cr Finished goods inventory $30,000
Explanation:
Preparation of the journal entries for the completion of the two jobs and the sale of Job 10
Mar. 31
Dr Finished goods inventory $50,000
(20,000+30,00)
Cr Work in process inventory $50,000
(Being To record the completion of the two jobs)
31 Dr Cash $35,000
Cr Sales revenue $35,000
(Being To record the sale job 10)
31 Dr Cost of goods sold $30,000
Cr Finished goods inventory $30,000
(Being To record the cost of the job sold)
On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 12% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $75,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $5,000 per year. Insurance premiums of $4,000 annually are related to the equipment. Both amounts were to be paid by the lessor and lease payments reflect both expenditures. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) At what amount will Jasperse record a right-of-use asset
Answer:
$442,977.5
Explanation:
Calculation for what amount will Jasperse record a right-of-use asset
Right of use asset = ($75,000 -$5,000) x PVAD, 12%, 10
Right of use asset =$70,000*6.32825
Right of use asset =$442,977.5
Therefore what Jasperse will record a right-of-use asset will be $442,977.5
A company that manufactures air-operated drain valve assemblies currently has $100,000 available to pay for plastic components over a 5-year period. If the company spent only $52,000 in year 1, what uniform annual amount can the company spend in each of the next 4 years to deplete the entire budget
Answer:
$18,297.31
Explanation:
The computation of the uniform amount that could be spend is shown below"
Here we determine the PMT
Given that
We assume the RATE = 10%
NPER = 5 - 1 = 4
PV = $100,000 × 1.1 - $52,000
= $110,000 - $52,000
= $58,000
FV = $0
The formula is given below:
= PMT(RATE,NPER,PV,FV,0)
The present value comes in negative
After applying the above formula, the uniform annual amount is $18,297.31
The market price of a security is $74. Its expected rate of return is 20.2%. The risk-free rate is 3% and the market risk premium is 6.5%. What will be the market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged)
Answer:
The market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged) will be $44.10.
Explanation:
Note: This question is not complete. The complete question is therefore presented before answering the question as follows:
The market price of a security is $74. Its expected rate of return is 20.2%. The risk-free rate is 3% and the market risk premium is 6.5%. What will be the market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged)
Assume that the stock is expected to pay a constant dividend in perpetuity.
Explanation of the answer is now given as follows:
Since the correlation coefficient with the market portfolio doubles (and all other variables remain unchanged), it implies that beta and also the risk premium will also double.
From the question, we can obtain:
Current risk premium = Expected rate of return - Market risk premium = 20.2% - 6.5% = 13.70%
As the current risk premium will double, we have:
New risk premium = Current risk premium * 2 = 13.70% * 2 = 27.40%
Also, we have:
New discount rate = New risk premium + Market risk premium = 27.40% + 6.5% = 33.90%
Since it is assumed that the stock is expected to pay a constant dividend in perpetuity, the dividend can therefore e calculated as follows:
Dividend = Current market price * Current expected rate of return = $74 * 20.2% = $14.95
The new market price of the security can now be calculated as follows:
New market price of the security = Dividend / New discount rate = $14.95 / 33.90% = $44.10
Therefore, the market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged) will be $44.10.
2. Grocers Absorb Rise in Food Prices to Keep Customers From Straying Dec. 17, 2017 7:00 a.m.
ET: Retailers hold line on prices, fearing they will lose business to discounters and new rivals online
Food costs are ticking up after a multiyear glut of many staples. But consumers aren't paying
much more yet because grocers, discounters and online retailers are all holding down prices to win
business. Many grocers are investing in e-commerce operations to keep up with Amazon.com Inc., which
has slashed prices on products including avocados, organic milk and chicken since it acquired Whole
Foods Market this summer. "Price competition is getting more severe," said Kemper Isely, co-president of
the Colorado-based Natural Grocers by Vitamin Cottage Inc., a health-food chain that competes with
Whole Foods in the West. The chain has cut prices this year in part to try to beat Whole Foods discounts.
Considering grocers, how can you apply price elasticity of demand to this situation?
what is the major difference between corporations and other kinds businesses?
Answer:
A corporation is a separate entity apart from that of the owners. A corporation is not responsible for its debts if it fails. A corporation is much larger than other kinds of businesses.
Explanation:
A corporation has a separate legal entity apart from that of the owners and workers.
does anyone know the accounting cycle???
