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Accounting

Prepare a profit and loss statement for a boutique with the following figures and determine if the store operated at a profit: Gross sales Customer returns Billed costs Inward freight Advertising Rent Alterations Salaries Miscellaneous expenses $104,000 5,000 49,000 10,000 7,500 12,000 1,000 16,000 5,000

Answered
27 Apr 2020
Accounting

           

Answered
27 Apr 2020
Accounting

16. Using compound interest, what is the Present Value of receiving $3,000 in 15 years' time when the interest rate is 4%?

Select one:

 
19.Calculate the simple interest for the whole first year of a promissory note where the principal is $34001, the interest rate is 8% and the note matures in 7 years' time.
Select one:
 
20.What is the name of the interest rate specified on the face of a bond?
Select one:
 
23.In 2020, Leonard Inc. declares a total of $2152 in cash dividends on common stock.  Net income was $24969 for the year. What is the dividend payout ratio?
Select one:
 
24.Vertical analysis is usually performed on what financial statements?
Select one:
Answered
27 Apr 2020
Accounting

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:

 

Common stock, $9 par value, 108,000 shares authorized

Preferred stock, 10 percent, par value $14 per share, 5,100 shares authorized

 

During the year, the following transactions took place in the order presented:

 

  1. Sold and issued 21,500 shares of common stock at $28 cash per share.
  2. Sold and issued 1,600 shares of preferred stock at $32 cash per share.
  3. At the end of the year, the accounts showed net income of $40,000. No dividends were declared.

 

Required:

1. Prepare the stockholders’ equity section of the balance sheet at the end of the year.

Answered
23 Apr 2020
Accounting
LUXIO GOLF CORP.
2009 Income Statement
Sales        $  285,760.00
Cost of Goods Sold            205,132.00
Depreciation              21,950.00
Earnings Before Interest & Tax        $    58,678.00
Interest Paid                9,875.00
Taxable Income        $    48,803.00
Taxes (35%)              17,081.05
Net Income        $    31,721.95
Dividends    $     18,000.00    
Addition to Retained Earnings           13,721.95    
         
         
         
         
LUXIO GOLF CORP.                      
2008 & 2009 Balance Sheets                      
Assets     Liabilities & Owner's Equity    
    2008   2009         2008   2009
Current Assets             Current Liabilities      
Cash    $  18,270.00    $  22,150.00 7.75%   Accounts Payable  $  16,215.00    $  17,318.00
Accounts Receivable        12,315.00        13,865.00 4.85%   Notes Payable        8,000.00        10,000.00
Inventory        21,584.00        24,876.00 8.71%   Other        11,145.00        14,451.00
Total Assets    $  52,169.00    $  60,891.00     Total    $  35,360.00    $  41,769.00
              Long-term Debt  $  80,000.00    $  85,000.00
Fixed Assets                      
Net Plant & Equipment    $168,326.00    $184,735.00     Owner's Equity      
              Common Stock & paid in Surplus  $  20,000.00    $  20,000.00
              Retained Earnings      85,135.00        98,857.00
              Total    $105,135.00    $118,857.00
                       
Total Assets    $220,495.00    $245,626.00     Total Liabilities & Owner's Equity  $220,495.00    $245,626.00
                       

 

  1. Using the financial statements for 2009 as your ‘base’, assume that Luxio’s sales are 20% higher for 2010.  Use this projection to prepare the pro forma statements following the requirements listed below.  Assume the change in sales is permanent.

 

  1. For the Income Statement:
  • Cost of Goods Sold rate is expected to remain constant;
  • ‘Depreciation’ and ‘Interest paid’ expenses are expected not to change;
  • The Tax rate is expected to decrease to 32%; and
  • Management is expected to increase the amount of dividends paid by 5% (therefore, the Dividend payout rate will increase by 5%).
  1. For the Balance Sheet:
  • ‘Current assets’ change in direct proportion to sales;
  • ‘Fixed assets’ are being operated at 100% of capacity;
  • ‘Accounts payable’ changes in direct proportion to sales;
  • ‘Notes payable’ and ‘Other’ current liabilities do not change;
  • ‘Common stock’ remains unchanged; and
  • Use ‘Long-term debt’ as the plug variable.
  1. Determine the amount of External Financing Needed (EFN) under the pro forma assumptions. Detail how this external financing is distributed.
Answered
20 Apr 2020
Accounting

As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Sales revenues $13,000 Depreciation $4,000 Other operating costs $6,000 Tax rate 35.0%

a. $5,950

b. $6,099

c. $6,251

d. $6,568

Answered
20 Apr 2020
Accounting

Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages subject to social security tax was $180,000, while the amount of wages subject to federal and state unemployment taxes was $24,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.3% Federal unemployment 0.8%. The total amount withheld from employee wages for federal income taxes was $32,000. Required: 1. Journalize the entry to record the payroll for the week of December 10. If an amount box does not require an entry, leave it blank. 2. Journalize the entry to record the payroll tax expense incurred for the week of December 10. If an amount box does not require an entry, leave it blank.

Answered
21 Apr 2020
Accounting

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: 

1

 

Rainier Company ($)

Yakima Company ($)

2

Materials inventory, May 1

100,000.00

48,200.00

3

Materials inventory, May 31

(a)

50,000.00

4

Materials purchased

950,000.00

710,000.00

5

Cost of direct materials used in production

938,500.00

(a)

6

Direct labor

2,860,000.00

(b)

7

Factory overhead

1,800,000.00

446,000.00

8

Total manufacturing costs incurred May

(b)

$2,484,200.00

9

Total manufacturing costs

5,998,500.00

2,660,600.00

10

Work in process inventory, May 1

400,000.00

176,400.00

11

Work in process inventory, May 31

382,000.00

(c)

12

Cost of goods manufactured

(c)

2,491,500.00

13

Finished goods inventory, May 1

615,000.00

190,000.00

14

Finished goods inventory, May 31

596,500.00

(d)

15

Sales

9,220,000.00

4,550,000.00

16

Cost of goods sold

(d)

2,470,000.00

17

Gross profit

(e)

(e)

18

Operating expenses

1,000,000.00

(f)

19

Net income

(f)

1,500,000.00

 

Required:

  1. For both companies, determine the amounts of the missing items (A) through (F), identifying them by letter.

  2. Prepare Yakima Company's statement of cost of goods manufactured for May.

  3. Prepare Yakima Company's income statement for May.

 

$

Answered
15 Apr 2020
Accounting

Calculate the predetermined overhead rate for 2020, assuming Bertrand Manufacturing estimates total manufacturing overhead costs of $1,546,930, direct labor costs of $754,600, and direct labor hours of 20,300 for the year

 

Answered
13 Apr 2020
Accounting

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
year:

Year 1  
July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30.
Oct. 1 Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, Year 2.
Dec. 31 Accrued $3,000 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Year 2  
June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,000 and principal of $28,673.
Dec. 31 Accrued $2,570 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Year 3  
June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. Record the redemption only.
Sept. 30 Paid the second annual payment on the note, which consisted of interest of $10,280 and principal of $30,393.
Required:
1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.
3. Determine the carrying amount of the bonds as of December 31, Year 2.

Answered
13 Apr 2020
Accounting

Aggie Corporation made a distribution of $514,000 to Rusty Cedar in partial liquidation of the company on December 31 of this year. Rusty, an individual, owns 100 percent of Aggie Corporation. The distribution was in exchange for 50 percent of Rusty’s stock in the company. At the time of the distribution, the shares had a fair market value of $159 per share. Rusty’s income tax basis in the shares was $35 per share. Aggie had total E&P of $8,480,000 at the time of the distribution.

b. Assuming Aggie made no other distributions to Rusty during the year, by what amount does Aggie reduce its total E&P as a result of the partial liquidation?
b. Assuming Aggie made no other distributions to Rusty during the year, by what amount does Aggie reduce its total E&P as a result of the partial liquidation?
Answered
9 Apr 2020
Accounting

Measures of liquidity, solvency, and profitability

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.

Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
  20Y2 20Y1
Retained earnings, January 1 $3,704,000 $3,264,000
Net income $ 600,000 $ 550,000
Dividends:    
On preferred stock (10,000) (10,000)
On common stock (100,000) (100,000)
Increase in retained earnings $ 490,000 $ 440,000
Retained earnings, December 31 $4,194,000 $3,704,000

  

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
  20Y2 20Y1
Sales $ 10,850,000 $10,000,000
Cost of goods sold (6,000,000) (5,450,000)
Gross profit $ 4,850,000 $ 4,550,000
Selling expenses $ (2,170,000) $ (2,000,000)
Administrative expenses (1,627,500) (1,500,000)
Total operating expenses $(3,797,500) $ (3,500,000)
Operating income $ 1,052,500 $ 1,050,000
Other revenue and expense:    
Other revenue 99,500 20,000
Other expense (interest) (132,000) (120,000)
Income before income tax expense $ 1,020,000 $ 950,000
Income tax expense (420,000) (400,000)
Net income $ 600,000 $ 550,000

  

  

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
  20Y2 20Y1
Assets  
Current assets:    
Cash $1,050,000 $ 950,000
Marketable securities 301,000 420,000
Accounts receivable (net) 585,000 500,000
Inventories 420,000 380,000
Prepaid expenses 108,000 20,000
Total current assets $ 2,464,000 $2,270,000
Long-term investments 800,000 800,000
Property, plant, and equipment (net) 5,760,000 5,184,000
Total assets $ 9,024,000 $8,254,000
Liabilities  
Current liabilities $ 880,000 $ 800,000
Long-term liabilities:    
Mortgage note payable, 6% $ 200,000 $ 0
Bonds payable, 4% 3,000,000 3,000,000
Total long-term liabilities $ 3,200,000 $3,000,000
Total liabilities $ 4,080,000 $3,800,000
Stockholders’ Equity  
Preferred 4% stock, $5 par $ 250,000 $ 250,000
Common stock, $5 par 500,000 500,000
Retained earnings 4,194,000 3,704,000
Total stockholders’ equity $ 4,944,000 $4,454,000
Total liabilities and stockholders’ equity $ 9,024,000 $8,254,000

Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent.

1. Working Capital $  
2. Current ratio  
3. Quick ratio  
4. Accounts receivable turnover  
5. Number of days’ sales in receivables  
6. Inventory turnover  
7. Number of days’ sales in inventory  
8. Ratio of fixed assets to long-term liabilities  
9. Ratio of liabilities to stockholders’ equity  
10. Times interest earned  
11. Asset turnover  
12. Return on total assets %
13. Return on stockholders’ equity %
14. Return on common stockholders’ equity %
15. Earnings per share on common stock $  
16. Price-earnings ratio  
17. Dividends per share of common stock $  
18. Dividend yield
Answered
31 Mar 2020
Accounting

 

Data for January for Bondi Corporation and its two major business segments, North and South, appear below:

 

   
Sales revenues, North $ 548,000  
Variable expenses, North $ 318,000  
Traceable fixed expenses, North $ 65,600  
Sales revenues, South $ 423,500  
Variable expenses, South $ 241,600  
Traceable fixed expenses, South $ 54,800  

 

In addition, common fixed expenses totaled $148,600 and were allocated as follows: $77,200 to the North business segment and $71,400 to the South business segment.

 

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

 

 
Answered
26 Mar 2020
Accounting

_____________is defined as after-tax operating profit minus the amount of new investment in working capital, fixed assets, and the development of new products.

Answered
25 Mar 2020
Accounting

Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: May $84,000 June 100,800 July 77,000 August 87,100 September 90,000.

Required:

Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers.

Kailua and Company Schedule
        August   September
June:            
$ ×  %       $   $
July:            
$ ×  %            
$ ×  %            
August:            
$ ×  %            
$ ×  %            
September:            
$ ×  %            
Total cash receipts       $  

    $

Answered
23 Mar 2020
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