On January 1, 2018, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $929,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2022, will be $313,000. Negotiations led to the lessee guaranteeing a $366,000 residual value.
Equal payments under the finance/sales-type lease are $213,000 and are due on December 31 of each year with the first payment being made on December 31, 2018. Karrier is aware that Allied used a 6% interest rate when calculating lease payments. (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.)
Required:
1. Prepare the appropriate entries for both Karrier and Allied on January 1, 2018, to record the lease.
2. Prepare all appropriate entries for both Karrier and Allied on December 31, 2018, related to the lease.
In: Accounting
Desh Bondhu Polymer Co. prepare a financial plan. Use the financial statements and the other information provided in what follows lo prepare the financial plan
Desh Bondhu Polymer
Statement of Profit & Loss
‘000
|
Particulars |
Actual figure of the year 2019 |
Initial forecast ( fort the year 2020) |
|
Sales Revenue Less: Cost of Goods sold Gross profits Less: Operating expenses Less: Depriciation EBIT Less: Interest EBT Less: Taxes @ 40% Net income Less: Cash Dividends To retained earnings |
Tk 15,000 11,250 3,750 1,250 300 Tk. 2,200 384 1,816 726.4 1,089.6 435.84 Tk. 653.76 |
Tk. 18,000 13,500 4,500 1,500 360 2.640 384 2,256 902.4 1,353.6 541.44 812.16 |
Desh Bondhu Polymer
Statement of financial Position as on December 31, 2019
|
Assets |
Amount (‘000) |
Liabilities and owners Equity |
Amount (‘000) |
|
Cash Marketable securities Accounts receivables Inventories Total current assets Net fixed assets Total assets |
Tk 150 800 1,000 2.700 Tk. 4,650 3.800 Tk 8.450 |
Accounts payable Taxes payable Notes Payable (6%) Total current liabilities Long-term bonds (12%) Common slock Retained earnings Total liabilities and equity |
Tk 600 300 400 Tk 1,300 3,000 1,300 2.850 Tk 8.450 |
The following financial information is also available:
Long-term bonds 60%, and Notes payable 40%.
Requirements:
i. List the above statements, and percentages of sales method to identify how much outside
Financing is required.
ii. According to stated structure, make the adjusted financial statements incorporating financing feedback.
In: Accounting
Re-organize the scrambled accounts into the income statement for Pet Land Inc., a pet food and accessories retailer in a small Canadian town.
You will have to calculate Sales Revenue, Cost of Goods Sold, the amount of tax that was paid, the totals for the sections of the statement and determine Gross Margin, Operating Margin, Income Before Tax and Net Income.
Compile Sales Revenue from Gross Sales Revenue and record it on the statement.
Compile the Cost of Goods Sold from the appropriate accounts and add it to the statement. Calculate the Gross Margin and record it on the statement.
List the Operating Expenses on the statement and total it. Calculate the Operating Margin and record it on the statement.
List the Non-operating Expenses on the statement, calculate and record Income Before Tax, calculate and record Taxes and calculate and record Net Income.
|
|
||
| Cleaning & Maintenance | 5,000 | ||
Office Supplies |
2,000 |
||
| Discounts | 12,300 | ||
Fixed Utilities (telephone, heat, hydro) |
2,000 | ||
| Purchases | 256,750 | ||
| Depreciation | 15,000 | ||
| Beginning Inventory | 42,500 | ||
| Taxes @ 34% | You calculate | ||
| Gross Sales Revenue | 697,200 | ||
| Closing Inventory | 33,250 | ||
| Returns | 19,900 | ||
| Salaries | 176,000 | ||
| Interest Expense | 7,000 | ||
Advertising & Promotion |
25,000 | ||
| Ending Inventory | 33,250 |
In: Accounting
I need a fresh answer. Do not copy and paste. Solve only when you have deep subject knowledge,. Thank You
Please answer the question below.
prepare the journal entries for all the following related transaction (all occurring within the current year). Assume all depletion and amoritization for the full year. Also, assume all purchases were made with cash.
A. An exploration company purchased land with a valuable ore deposit
Estimated ore available in the deposit (in tons) 4,700,000
Acquisition price $3,500,000
Residual value of land once ore is fully depleted $500,000
Ore removed in the current year (in tons) 365,000
B. The exploration company developed a high speed drill to use in its explorations.
Economic liffe of the drill (in years) 5
Costs inccurred in the current year to develop the drill $550,000
Attorney fees incured to protect the patent $15,000
C. The exploration company purchased Goshen Hole Company
Acquisition price $3,250,600
Book Value of Goshen Hole Company $2,415,960
In: Accounting
In: Accounting
In: Accounting
Continuing on financial statement fraud. How does this affect the corporation, employees, investors, related parties, and consumers.
In: Accounting
Hyrkas Corporation's most recent balance sheet and income statement appear below:
|
Balance Sheet |
||||||
|
December 31, Year 2 and Year 1 |
||||||
|
(in thousands of dollars) |
||||||
|
Year 2 |
Year 1 |
|||||
|
Assets |
||||||
|
Current assets: |
||||||
|
Cash |
$ |
180 |
$ |
250 |
||
|
Accounts receivable, net |
280 |
300 |
||||
|
Inventory |
250 |
220 |
||||
|
Prepaid expenses |
20 |
20 |
||||
|
Total current assets |
730 |
790 |
||||
|
Plant and equipment, net |
940 |
980 |
||||
|
Total assets |
$ |
1,670 |
$ |
1,770 |
||
|
Liabilities and Stockholders' Equity |
||||||
|
Current liabilities: |
||||||
|
Accounts payable |
$ |
220 |
$ |
250 |
||
|
Accrued liabilities |
50 |
50 |
||||
|
Notes payable, short term |
40 |
40 |
||||
|
Total current liabilities |
310 |
340 |
||||
|
Bonds payable |
210 |
300 |
||||
|
Total liabilities |
520 |
640 |
||||
|
Stockholders’ equity: |
||||||
|
Common stock, $2 par value |
200 |
200 |
||||
|
Additional paid-in capital |
330 |
330 |
||||
|
Retained earnings |
620 |
600 |
||||
|
Total stockholders’ equity |
1,150 |
1,130 |
||||
|
Total liabilities & stockholders’ equity |
$ |
1,670 |
$ |
1,770 |
||
|
Income Statement |
|||
|
For the Year Ended December 31, Year 2 |
|||
|
(in thousands of dollars) |
|||
|
Sales (all on account) |
$ |
1,320 |
|
|
Cost of goods sold |
820 |
||
|
Gross margin |
500 |
||
|
Selling and administrative expense |
395 |
||
|
Net operating income |
105 |
||
|
Interest expense |
20 |
||
|
Net income before taxes |
85 |
||
|
Income taxes (30%) |
26 |
||
|
Net income |
$ |
59 |
|
Dividends on common stock during Year 2 totaled $39 thousand. The market price of common stock at the end of Year 2 was $14.40 per share.
Required: (Please help with g-q. I have solutions to a-f. Thank you.
Compute the following for Year 2:
a. Gross margin percentage. (Round your answer to 1 decimal place.)
b. Earnings per share. (Round your answer to 2 decimal places.)
c. Price-earnings ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.)
d. Dividend payout ratio. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place.)
e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)
f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)
g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)
h. Book value per share. (Round your answer to 2 decimal places.)
i. Working capital. (Input your answer in thousands of dollars.)
j. Current ratio. (Round your answer to 2 decimal places.)
k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)
l. Accounts receivable turnover. (Round your answer to 2 decimal places.)
m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
n. Inventory turnover. (Round your answer to 2 decimal places.)
o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
p. Times interest earned ratio. (Round your answer to 2 decimal places.)
q. Debt-to-equity ratio. (Round your answer to 2 decimal places.)
In: Accounting
Income Statement
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,100 units will be produced, with the following total costs:
| Direct materials | ? |
| Direct labor | 55,000 |
| Variable overhead | 28,000 |
| Fixed overhead | 245,000 |
Next year, Pietro expects to purchase $119,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:
| Direct materials Inventory |
Work-in-Process Inventory |
|
| Beginning | $6,000 | $12,500 |
| Ending | $5,900 | $14,500 |
Next year, Pietro expects to produce 53,100 units and sell 52,400 units at a price of $15.00 each. Beginning inventory of finished goods is $39,500, and ending inventory of finished goods is expected to be $31,000. Total selling expense is projected at $27,500, and total administrative expense is projected at $126,000.
Required:
1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.
| Pietro Frozen Foods, Inc. | |||
| Income Statement | |||
| For the Coming Year | |||
| Percent | |||
|
$ | % | |
|
% | ||
|
$ | % | |
| Less operating expenses: | |||
|
$ | ||
|
% | ||
|
$ | % | |
2. What if the cost of goods sold percentage for the past few years was 54.77 percent? Management's reaction might be:
In: Accounting
Feathered FriendsFeathered Friends makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $12 per birdfeeder. Each birdfeeder requires 3.0 board feet of wood, which the company obtains at a cost of $2 per board foot. The company would like to maintain an ending stock of wood equal to 10% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdfeeders equal to 25% of the next month's sales. Sales data for the company is as follows:
|
Units |
|
|
October actual sales (prior year). . . . . . . . |
96,000 |
|
November actual sales (prior year). . . . . . |
89,000 |
|
December actual sales (prior year). . . . . . |
80,000 |
|
January projected sales. . . . . . . . . . . . . |
76,000 |
|
February projected sales. . . . . . . . . . . . . . |
86,000 |
|
March projected sales. . . . . . . . . . . . . . . . . |
97,000 |
|
April projected sales. . . . . . . . . . . . . . . . . . |
110,000 |
| In any given month,
20% of the total sales are cash sales, while the remainder are credit sales. |
| The company's collection history indicates that 60 % of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected. |
|
Assume that the total cost of direct materials purchases in
December was $520,000. The company pays 60% |
Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter. Assume the company needs 105,000
board feet of wood for production in April. (Round your answers to the nearest whole dollar.)
|
Feathered Friends |
|||||
|
Direct Materials Budget |
|||||
|
For the Quarter Ended March 31 |
|||||
|
January |
February |
March |
Quarter |
|
|
Units to be produced |
||||
|
Multiply by: Quantity (board feet) of DM needed per unit |
||||
|
Quantity (board feet) needed for production |
||||
|
Plus: Desired ending inventory of DM |
||||
|
Total quantity (board feet) needed |
||||
|
Less: Beginning inventory of DM |
||||
|
Quantity (board feet) to purchase |
||||
|
Multiply by: Cost per board foot |
||||
|
Total cost of DM purchases |
In: Accounting
During 2020, Skysong Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Skysong for a
lump sum of $77,805 because it is discontinuing manufacturing
operations and wishes to dispose of its entire stock. Three types
of chairs are included in the carload. The three types and the
estimated selling price for each are listed below.
|
Type |
No. of Chairs |
Estimated Selling |
|||
|---|---|---|---|---|---|
|
Lounge chairs |
520 | $90 | |||
|
Armchairs |
390 | 80 | |||
|
Straight chairs |
910 | 50 | |||
During 2020, Skysong sells 260 lounge chairs, 130 armchairs, and
156 straight chairs.
What is the amount of gross profit realized during 2020? What is
the amount of inventory of unsold straight chairs on December 31,
2020? (Round cost per chair to 2 decimal places, e.g.
78.25 and final answer to 0 decimal places, e.g.
5,845.)
|
Gross profit realized during 2020 |
$enter a dollar amount |
|
|---|---|---|
|
Amount of inventory of unsold straight chairs |
$enter a dollar amount |
In: Accounting
olvency Analysis
The following information is available from the balance sheets
at the ends of the two most recent years and the income statement
for the most recent year of Impact Company:
| December 31 | ||||||
| 2017 | 2016 | |||||
| Accounts payable | $ 65,000 | $ 50,000 | ||||
| Accrued liabilities | 25,000 | 35,000 | ||||
| Taxes payable | 60,000 | 45,000 | ||||
| Short-term notes payable | 0 | 75,000 | ||||
| Bonds payable due within next year | 200,000 | 200,000 | ||||
| Total current liabilities | $ 350,000 | $ 405,000 | ||||
| Bonds payable | $ 600,000 | $ 800,000 | ||||
| Common stock, $10 par | $1,000,000 | $1,000,000 | ||||
| Retained earnings | 650,000 | 500,000 | ||||
| Total stockholders’ equity | $1,650,000 | $1,500,000 | ||||
| Total liabilities and stockholders’ equity | $2,600,000 | $2,705,000 | ||||
| 2017 | ||
| Sales revenue | $1,600,000 | |
| Cost of goods sold | 950,000 | |
| Gross profit | $ 650,000 | |
| Selling and administrative expense | 300,000 | |
| Operating income | $ 350,000 | |
| Interest expense | 89,000 | |
| Income before tax | $ 261,000 | |
| Income tax expense | 111,000 | |
| Net income | $ 150,000 |
Other Information:
Required:
1. Compute the following for Impact Company. Round your answers to two decimal places.
| 2017 | 2016 | |||
| a. The debt-to-equity ratio at December 31, 2017, and December 31, 2016 | to 1 | to 1 | ||
| b. The times interest earned ratio for 2017 | to 1 | |||
| c. The debt service coverage ratio for 2017 | times | |||
In: Accounting
Based on your work experience or reading of the chapter, briefly describe how an ERP can connect and integrate the cycles of a business (e.g., revenue-expenditure cycles, revenue-payroll cycles, and etc)
In: Accounting
Question 2 Active PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company. Information concerning raising new capital Bonds $1,000 Face value 13% Coupon Rate (Annual Payments) 20 Term (Years) $25 Discount offered (required) to sell new bonds $10 Flotation Cost per bond Preference Shares 11% Required rate to sell new preference shares $100 Face Value $3 Flotation cost per share Ordinary Shares $83.33 Current Market Price $4.00 Discount on share price to sell new shares $5.40 Flotation Cost per bond $5.00 2019 - Proposed Dividend Dividend History $4.63 2019 $4.29 2018 $3.97 2017 $3.68 2016 $3.40 2015 Current Capital Structure Extract from Balance Sheet $1,000,000 Long-Term Debt $800,000 Preference Shares $2,000,000 Ordinary Shares Current Market Values $2,000,000 Long-Term Debt $750,000 Preference Shares $4,000,000 Ordinary Shares Tax Rate 33% Risk Free Rate 5% 3 a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available. b) Calculate the WACC given the existing weights The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows Long-term debt 40% Preference Shares 15% Ordinary Shares 45% c) What impact do these new weights have on the WACC? The firm is considering the following investment opportunity. (2020-2027) Data is as follows Initial Outlay $1,600,000 Upgrade $700,000 End of Year 4 Upgrade - 350,000 Increased sales units per annum - (Year 5-8) Working Capital $45,000 Increase required Estimated Life 8 Years Salvage Value $60,000 Depreciation Rate 0.125 For tax purposes The machine is fully depreciated by the end of its useful life Other Cash Expenses $60,000.00 Per annum (Years 1-4) Other Cash Expenses $76,000.00 Per annum (Years 5-8) Production Costs $0.15 Per Unit Sales price $0.75 Per Unit (Years 1-4) Sales price $1.02 Per Unit (Years 5-8) 4 Prior sales estimates Year Sales 2010 520000 2011 530000 2012 540000 2013 560000 2014 565000 2015 590000 2016 600000 2017 610000 2018 615559 2019 659000 2020 680000 d) Calculate the Net Present Value, Internal Rate of Return and Payback Period The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent. Year Stock Market Share Index Price 2010 2000 $15.00 2011 2400 $25.00 2012 2900 $33.00 2013 3500 $40.00 2014 4200 $45.00 2015 5000 $55.00 2016 5900 $62.00 2017 6000 $68.00 2018 6100 $74.00 2019 6200 $80.00 2020 6300 $83.33 e) Calculate the CAPM f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)
In: Accounting
explain the situations that are related to the transfer of products between divisions located in different countries. illustration 8B-1 from your textbook, Weygandt, Kimmel, & Kieso (2015, p. 337). What conclusion can you come to after analyzing the data in Illustration 8B-1? There, a company's after-tax contribution margins are compared using a unit transfer price of $ 18.00 versus a unit transfer price of $ 11.00 (Weygandt, Kimmel, & Kieso, 2015, p. 337).
In: Accounting