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 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 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 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.
Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)
|
Complete this question by entering your answers in the tabs below.
Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)
|
Complete this question by entering your answers in the tabs below.
Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)
|
Complete this question by entering your answers in the tabs below.
Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)
|
Complete this question by entering your answers in the tabs below.
Determine the net present value for this investment.
|
In: Accounting
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 | |||||
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 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 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 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 | |
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.
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 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 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
In: Accounting
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
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 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 $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