Questions
Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales...

Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales on Account May $42,000 $257,000 June $37,000 $243,000 July $29,000 $238,000 August $48,000 $251,000 September $52,000 $269,000 October $45,000 $263,000 On average, 32% of the sales on account are collected in the month of sale, 40% are collected in the month following sale, 16% are collected in the second month following sale, 9% are collected in the third month following sale, and the remaining 3% is collected four months after the month of sale. Calculate Towing Company's budgeted accounts receivable at October 31.

In: Accounting

Decision Making and relevant factors: You have an opportunity to choose a flight for your upcoming...

Decision Making and relevant factors:

You have an opportunity to choose a flight for your upcoming spring break trip to Hawaii. After a lot of thought and research, you have narrowed your options to four different flights. If there are no delays, each should you to your destination on time. It is important to arrive on tim, since you have to meet a but at a specific time to take you and other students to your final destination. If any of the flights are late, arranging for alternative transportation will be difficult. Basic info. About each flight is as follow:

Flight 1

Flight 2

Flight 3

Flight 4

Base Price

$300

$400

$500

$600

Flight Time and Connections

12hrs/3

6hrs/2

5hrs/1

3hrs/direct

first class upgrade

NA

$250

$200

$300

Meals (airport and plane)

$30

$15

$10

included in fare

wireless internet access

NA

$20

$25

included in fare

Beverages

$10

$10

$10

included in fare

Total Price all options

$340

$695

$745

$900

What are the relevant factors affecting your choice of flight? Explain.

In: Accounting

Southside Company manufactures three products from a common input in a joint processing operation. What is...

Southside Company manufactures three products from a common input in a joint processing operation. What is the financial advantage (disadvantage) of further processing each of the products beyond the split off point.  Round each answer to the nearest whole dollar and include the $ sign and any necessary commas. Only answers in this format will be accepted.

Product Selling Price Annual Output

A $6 / lb 1,000 lbs

B $8 / lb 3,000 lbs

C $5 / gal 2,000 gallons

Further Processing requires no special facilities. Additional costs and selling price are given below:

Product Additional Processing Costs Selling Price

A $13,000 $20 / lb

B $80,000 $13 / lb

C $63,000 $32 / gal

Product A additional CM =

Product A additional cost =

Product A Advantage/Disadvantage =

Product A sell or process further =

Product B additional CM =

Product B additional cost =

Product B Advantage/Disadvantage =

Product B sell or process further =

Product C additional CM =

Product C additional cost =

Product C Advantage/Disadvantage =

Product C sell or process further =

In: Accounting

Sentinel Company is considering an investment in technology to improve its operations. The investment will require...

Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $256,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 8% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.)

Period Cash Flow
1 $ 47,400
2 52,800
3 76,600
4 95,800
5 125,100


Required:
1. Determine the payback period for this investment.
2. Determine the break-even time for this investment.
3. Determine the net present value for this investment.

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow)
0 $(256,000)
1
2 0
3 0
4 0
5 0
0
Payback period =
  • Required 1
  • Required 2

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow)
0 $(256,000)
1
2 0
3 0
4 0
5 0
0
Payback period =
  • Required 1
  • Required 2

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow)
0 $(256,000)
1
2 0
3 0
4 0
5 0
0
Payback period =
  • Required 1
  • Required 2

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow)
0 $(256,000)
1
2 0
3 0
4
5 0
0
Payback period =

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Determine the net present value for this investment.

Net present value
  • Required 2
  • Required 3

In: Accounting

Exercise 21A-10 a-d The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company...

Exercise 21A-10 a-d

The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Marin Company, a lessee.

Commencement date May 1, 2017
Annual lease payment due at the beginning of
   each year, beginning with May 1, 2017 $19,656.69
Bargain purchase option price at end of lease term $7,000
Lease term 5 years
Economic life of leased equipment 10 years
Lessor’s cost $65,000
Fair value of asset at May 1, 2017 $93,000
Lessor’s implicit rate 6 %
Lessee’s incremental borrowing rate 6 %


The collectibility of the lease payments by Cullumber is probable.

Prepare a lease amortization schedule for Marin for the 5-year lease term.

Prepare the journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. Marin’s annual accounting period ends on December 31. Reversing entries are used by Marin. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.)

In: Accounting

Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,890,000...

Assume that the following data relative to Kane Company for 2018 is available:

Net Income $2,890,000
Transactions in Common Shares Change Cumulative
Jan. 1, 2018, Beginning number 720,000
Mar. 1, 2018, Purchase of treasury shares (67,200) 652,800
June 1, 2018, Stock split 2-1 652,800 1,305,600
Nov. 1, 2018, Issuance of shares 240,000 1,545,600
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 190,000 shares of common (adjusted for split). $950,000
Stock Options
Exercisable at the option price of $25 per share. Average market price in 2018, $30 (market price and option price adjusted for split). 93,000 shares

Compute weighted average shares outstanding for 2018.

Weighted average shares outstanding

Compute the basic earnings per share for 2018. (Round answer to 2 decimal places, e.g. 52.75.)

Basic earnings per share $

Compute the diluted earnings per share for 2018. (Round answer to 2 decimal places, e.g. 52.75.)

Diluted earnings per share $

In: Accounting

On January 1, Year 1, a contractor agrees to build on the customer’s land a bridge...

On January 1, Year 1, a contractor agrees to build on the customer’s land a bridge that is expected to be completed at the end of Year 3. The bridge is a single performance obligation to be satisfied over time. The contractor determines that the progress toward completion of the bridge is reasonably measurable using the input method based on costs incurred. The contract price is $4,000,000, and initial expected total costs of the project are $2,400,000.

Year 1

Year 2

Year 3

Costs incurred during each year

$   600,000

$1,200,000

$1,100,000

Costs expected in the future

1,800,000

1,200,000


^ this is the question form the professor and I did the answers for year 1-2-3 :

Year 1
By the end of Year 1, 25% [$600,000 ÷ ($600,000 + $1,800,000)] of the total expected costs have been incurred. Using the input method based on costs incurred, the contractor recognizes 25% of the total expected revenue ($4,000,000 contract price × 25% ) = $1,000,000 and cost of goods sold $2,400,000.× 25%) = $600,000. The difference between these amounts is the gross profit for Year 1.

Revenue $1,000,000, Cost of goods sold $600,000 , Gross profit (1,000,000 – 600,000) =$400,000. The gross profit in Year 1 of $400,000 also may be calculated as total expected gross profit from the project of $1,600,000 ($4,000,000 - $2,400,000) times the progress toward completion of the contract of 25%.

Year 2
By the end of Year 2, total costs incurred are $1,800,000 ($600,000+ $1,200,000). Given that $1,200,000 is expected to be incurred in the future, the total expected cost is $3,000,000 ($1,800,000 + $1,200,000). The change in the total cost of the contract must be accounted for prospectively. By the end of Year 2, 60% ($1,800,000 ÷ $3,000,000) of expected costs have been incurred.
Thus, $2,400,000 ($4,000,000 × 60%) of cumulative revenue and $1,800,000 ($ 3,000,000 × 60%) of cumulative cost of goods sold should be recognized for Years 1 and 2.
Because $1,000,000 of revenue and $600,000 of cost of goods sold were recognized in Year 1, revenue of $1,400,000 ($2,400,000 cumulative revenue - $1,000,000) and cost of goods sold of $1,200,000 ($1,800,000 cumulative cost of goods sold - $600,000) are recognized in Year 2.
Revenue
$1,400,000
Cost of goods sold
1,200,000
Gross profit -- Year 2
$200,000*
* The gross profit in Year 2 of $200,000 also may be calculated as the cumulative gross profit for Years 1 and 2 of $600,000 [($4,000,000 - $3,000,000) × 60%] minus the gross profit recognized in Year 1 of $400,000.

Year 3
At the end of Year 3, the project is completed, and the total costs incurred for the contract are $2,900,000 ($600,000 + $1,200,000 + $1,100,000). Given $2,400,000 of cumulative revenue and $1,800,000 of cumulative cost of goods sold for Years 1 and 2, $1,600,000 ($4,000,000 contract price - $2,400,000) of revenue and $1,100,000 ($2,900,000 total costs - $1,800,000) of cost of goods sold are recognized in Year 3.

Revenue
$1,600,000
Cost of goods sold
1,100,000
Gross profit -- Year 3
$500,000
NOTE: (1) The total gross profit from the project of $550,000 ($400,000 + $200,000 + $500,000) equals the contract price of $4,000,000 minus the total costs incurred of $2,900,000. (2) When progress toward completion is measured using the cost-to-cost method, as in the example above, the cost of goods sold recognized for the period equals the costs incurred during that period.

NOW : I need the answer for this question:

An entity may not be able to estimate the degree of completion of a project at the end of the first year, perhaps because this is the first time such a project has been undertaken by the firm. In that case, how much revenue would the firm recognize in that year if significant costs have been incurred in the construction process?

In: Accounting

What is the interest rate that the United States Government must pay if they want to...

What is the interest rate that the United States Government must pay if they want to borrow for ten years?

Does this rate change from one day to the next?

If I buy a ten-year U.S. treasury bond what cash flows would I expect to receive from the U.S. Government?

In: Accounting

The following account balances are for the Agee Company as of January 1, 2017, and December...

The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

January 1, 2017 December 31, 2017
Accounts payable (15,000 ) (25,000 )
Accounts receivable 54,000 104,000
Accumulated depreciation—buildings (45,000 ) (50,000 )
Accumulated depreciation—equipment 0 (7,500 )
Bonds payable—due 2020 (64,000 ) (64,000 )
Buildings 134,000 105,000
Cash 60,000 10,500
Common stock (69,000 ) (82,000 )
Depreciation expense 0 40,000
Dividends (10/1/17) 0 57,000
Equipment 0 64,000
Gain on sale of building 0 (8,500 )
Rent expense 0 21,500
Retained earnings (55,000 ) (55,000 )
Salary expense 0 45,000
Sales 0 (162,000 )
Utilities expense 0 7,000

Additional Information

  • Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

  • Agee purchased buildings in 2011 and sold one building with a book value of Kr 1,500 on July 1 of the current year.

  • Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

2010 $ 2.90
2011 2.70
January 1, 2017 3.00
April 1, 2017 3.10
July 1, 2017 3.30
October 1, 2017 3.40
December 31, 2017 3.50
Average for 2017 3.20
  1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $145,200, which included a remeasurement loss of $28,300.

  2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $162,250, and a cumulative translation adjustment of $9,650 (credit balance).

(Input all answers as positive.)

Remeasurment -------------------------?

Translation Adjustment ------------------------?

In: Accounting

Parker Corporation has issued 1,700 shares of common stock and 340 shares of preferred stock for...

Parker Corporation has issued 1,700 shares of common stock and 340 shares of preferred stock for a lump sum of $62,000 cash.

Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

List of Accounts

Give the entry for the issuance assuming the same facts as the par value of the common stock was $5 and the fair value of $25 per share, and the par value of the preferred stock was $40 and has no ready market. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

In: Accounting

The Valerie Trust is a complex trust. In Year 3, The Valerie Trust had various items...

The Valerie Trust is a complex trust. In Year 3, The Valerie Trust had various items of income and expense as indicated below. For each item below, please indicate how much, if any, should be included in the calculation of distributable net income for Year 3.

Item                                                                                        Amount in DNI

  1. Corporate Bond interest received, $700.
  2. Municipal Bond interest received, $400.
  3. A stock that was purchased 2 years ago for $2,100 was sold for $6,100.
  4. Rental
    1. Income of $4,500.
    2. Rental Expense of $1,100
  5. Trustee fee, $2,000 allocated 70% to principal and 30% to income.

In: Accounting

How do traders treat swap income and expenses and how do investors treat swap income and...

How do traders treat swap income and expenses and how do investors treat swap income and expense. There is a major difference, what is it?

In: Accounting

Direct, sequential, and reciprocal allocation Ming Company has two service departments (S1 and S2) and two...

Direct, sequential, and reciprocal allocation
Ming Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $255,000 for S1 and $320,000 for S2.
Information on the consumption of their services follows:

Supplying User Departments
Departments S1 S2 P1 P2
S1 500 1,200 6,000 1,300
S2 800 200 7,000 9,000

(a) Determine the service department costs allocated to the two production departments using the direct method.
Note: Round each rate to two decimal places before calculating the allocated amounts. Round answers to the nearest dollar.

Rate Total
(rounded to 2 decimals) Total P1 Total P2 (any diff due to rounding)
S1 allocation amount Answer Answer Answer
S1 allocation amount Answer Answer Answer
Total service department costs Answer Answer Answer

(b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs.
Note: Round each rate to two decimal places before calculating the allocated amounts. Round answers to the nearest dollar.

Total allocated service
department costs
P1 Answer
P2 Answer
Total (any diff due to rounding) Answer

(c) Determine the service department costs allocated to the two production departments using the reciprocal method.

Note: Do not round your computations; however, round your final answers to the nearest dollar.

Total allocated service
department costs
P1 Answer
P2 Answer
Answer

In: Accounting

I do have an accounting project and one of the requirements is to ( Write a...

I do have an accounting project and one of the requirements is to ( Write a brief of how the team carried out the plan also to comment on how you would improve your process for completing the project) we all did a good job on the project but I'm bad at writing a brief summary on it.

i need help!

In: Accounting

1-Love deep invested $300,000 cash to begin her environmental consulting business 2- his Environmental Consulting paid...

1-Love deep invested $300,000 cash to begin her environmental consulting business

2- his Environmental Consulting paid $50 ,000 cash for land as a future office lactation .

3- The business purchased office supplies for $20,000 on account,

4-The business provided environmental consulting services for clients and received $50,000 cash.

5-The business provided environmental consulting services of $30 ,000 to clients who will pay for the services within one month.

6-The business paid the following expenses: office rent, $5,000; employee salaries, $5,000; and utilities, $5,000

7-The business paid $10,000 on the account payable created in Transaction 3.

8- Loveddep remodelled her personal residence with personal funds. This is not a business transaction of the environmental consulting business, so no journal entry is made

9-The business received $20,000 cash from one of the clients discussed in Transaction 5.

10- Lovedeep withdrew $10,000 cash for personal living expenses

In: Accounting