A parachutist whose mass is 65 kg drops from a helicopter
hovering 2000 m above the ground and falls toward the ground under
the influence of gravity. Assume that the force due to air
resistance is proportional to the velocity of the parachutist,
with the proportionality constant b1 = 20 N-sec/m when
the chute is closed and b2 = 90 N-sec/m when the chute
is open. If the chute does not open until the velocity of the
parachutist reaches 25 m/sec, after how many seconds will the
parachutist reach the ground? Assume that the acceleration due to
gravity is 9.81 m divided by sec squared.
The parachutist will reach the ground after
_______ seconds.
(Round to two decimal places as needed.)
In: Mechanical Engineering
Determining Merchandise to be Included or Excluded from Ending Inventory
The unadjusted inventory balance of Sara Ann Corp. is $500,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized.
a. On December 31, the physical inventory excluded $500 of merchandise inventory shipped to Sara Ann Corp. from a vendor f.o.b. destination that arrived on January 1, 2021.
b. On December 31, the physical inventory included $18,000 of merchandise inventory held on consignment by a customer. Sara Ann Corp. is the consignor.
c. On December 31, the physical inventory included $800 of merchandise held on consignment. The consignor is Sara Ann’s largest vendor.
d. $18,000 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excluded from the physical inventory count. The merchandise was shipped on December 28, 2020, and is expected to arrive at the customer on December 31, 2020.
e. Goods are in-transit from a vendor to Sara Ann on December 31, 2020. The invoice cost was $12,000 and the goods were shipped f.o.b. shipping point on December 28, 2020. The merchandise was excluded from the physical inventory count because they had not been delivered.
f. Merchandise with a cost of $300 is held in the receiving department for return. The merchandise was excluded from the physical inventory count.
Required
Considering items a through f, determine the adjusted inventory balance for Sara Ann Corp.
Adjusted inventory balance on December 31, 2020: $Answer
In: Accounting
Cheyenne Company reports pretax financial income of $70,000 for 2020. The following items cause taxable income to be different than pretax financial income.
| 1. | Depreciation on the tax return is greater than depreciation on the income statement by $15,100. | |
| 2. | Rent collected on the tax return is greater than rent recognized on the income statement by $23,200. | |
| 3. | Fines for pollution appear as an expense of $10,300 on the income statement. |
Cheyenne’s tax rate is 30% for all years, and the company expects
to report taxable income in all future years. There are no deferred
taxes at the beginning of 2020.
Compute taxable income and income taxes payable for 2020.
|
Taxable income |
$enter a dollar amount |
|
|---|---|---|
|
Income taxes payable |
$enter a dollar amount |
Prepare the journal entry to record income tax expense, deferred
income taxes, and income taxes payable for 2020.
(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.)
Prepare the income tax expense section of the income statement
for 2020, beginning with the line “Income before income taxes.”
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
Compute the effective income tax rate for 2020.
(Round answer to 1 decimal places, e.g.
25.5%.)
| Effective income tax rate |
enter the Effective income tax rate in percentages rounded to 1 decimal place |
In: Accounting
Financial Statement Analysis
The financial statements of Gelato Corporation show the following information:
Statement of Financial Position
December 31, 2020
Assets 2020 2019
Cash $257,000 $263,000
Accounts receivable 128,000 163,000
Fair value through net income investments 120,000 119,000
Inventory 320,000 361,000
Plant assets (net) 398,000 418,500
Intangible assets 102,000 128,500
Total Assets $1,325,000 $1,453,000
Liabilities and Equity
Accounts payable $240,000 $303,500
Long-term debt 60,000 137,500
Share capital 293,000 293,000
Retained earnings 732,000 719,000
Total Liabilities and equity $1,325,000 $ 1,453,000
Income Statement
Year Ended December 31, 2020
2020 2019
Net sales $725,000 $703,000
Cost of goods sold (474,000) (477,000)
Gross profit 251,000 226,000
Selling and admin expenses (126,000) (100,000)
Other expenses, net (106,000) (99,000)
Income before income tax 19,000 27,000
Income tax (5,400) (8,100)
Net income $13,600 $18,900
REQUIRED: Show all calculations. Round percentages to one decimal place.
A. Using horizontal analysis, analyze Gelato Corporation’s change in liquidity, solvency, and profitability in 2020.
B. Using vertical analysis, analyze Gelato Corporation’s decline in net income in 2020
C. Identify at least two profitability ratios that are obtained from the vertical analysis performed in part (b). Is profitability improving or deteriorating based on these ratios? Briefly explain
In: Finance
Presented below are the 2020 Income Statement and Balance Sheet for Riggins Online Store. Prepare a Cash Flow Statement as of December 31, 2020.
Additional Information for the 2020 fiscal year includes: 1) Cash dividends of $1,000 were declared and paid. 2) Equipment with a cost of $1,500 and accumulated depreciation of $1,000 was sold for $500.
|
Riggins Online Store |
||||
|
Income Statement |
||||
|
For the Year Ended December 31, 2020 |
||||
|
Sales Revenue |
$ 14,250 |
|||
|
Service Revenue |
3,400 |
|||
|
Total Revenue |
$ 17,650 |
|||
|
Operating Expenses: |
||||
|
Cost of Goods Sold |
5,600 |
|||
|
Depreciation |
1,600 |
|||
|
Selling |
2,400 |
|||
|
General and administrative |
1,500 |
|||
|
Total Operating Expenses |
11,100 |
|||
|
Operating Income |
6,550 |
|||
|
Interest Expense |
200 |
|||
|
Income Before Income Taxes |
6,350 |
|||
|
Income Tax Expense |
2,500 |
|||
|
Net Income |
$ 3,850 |
|||
|
Riggins Online Store |
||||
|
Balance Sheet |
||||
|
As of December 31, 2019 and 2020 |
||||
|
2020 |
2019 |
|||
|
Assets |
||||
|
Cash |
$ 7,350 |
$ 2,200 |
||
|
Accounts Receivable |
2,500 |
2,200 |
||
|
Inventory |
4,000 |
3,000 |
||
|
Prepaid Rent |
150 |
300 |
||
|
Plant and Equipment |
14,500 |
12,000 |
||
|
Less: Accumulated Deprecation |
(5,100) |
(4,500) |
||
|
Total Assets |
$ 23,400 |
$ 15,200 |
||
|
Liabilities and Shareholder's Equity |
||||
|
Accounts Payable |
$ 1,400 |
$ 1,100 |
||
|
Interest Payable |
100 |
- |
||
|
Deferred Service Revenue |
800 |
600 |
||
|
Income Taxes Payable |
550 |
800 |
||
|
Note Payable, due 12,31, 2023 |
5,000 |
- |
||
|
Common Stock |
10,000 |
10,000 |
||
|
Retained Earnings |
5,550 |
2,700 |
||
|
Total Liabilities and Shareholder's Equity |
$ 23,400 |
$ 15,200 |
||
In: Accounting
Required information
[The following information applies to the questions displayed below.]
Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):
| 2019 | 2020 | ||||||
| Sales | $ | 15,400 | $ | 19,400 | |||
| Materials inspection | 240 | 54 | |||||
| In-process (production) inspection | 154 | 119 | |||||
| Finished product inspection | 190 | 64 | |||||
| Preventive equipment maintenance | 14 | 54 | |||||
| Scrap (net) | 440 | 240 | |||||
| Warranty repairs | 640 | 390 | |||||
| Product design engineering | 144 | 210 | |||||
| Vendor certification | 26 | 54 | |||||
| Direct costs of returned goods | 215 | 74 | |||||
| Training of factory workers | 34 | 134 | |||||
| Product testing—equipment maintenance | 54 | 54 | |||||
| Product testing labor | 150 | 84 | |||||
| Field repairs | 64 | 34 | |||||
| Rework before shipment | 180 | 194 | |||||
| Product-liability settlement | 300 | 54 | |||||
| Emergency repair and maintenance | 140 | 69 | |||||
Required:
1. Classify the cost items in the table into cost-of-quality (COQ) categories.
2. Calculate the ratio of each COQ category to revenues in each of the 2 years.
3. Calculate the percentage change in each COQ category and total COQ and comment on the results:
a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020;
b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars;
c. Percentage change in total prevention costs, 2019 to 2020;
d. Percentage change in total appraisal costs, 2019 to 2020;
e. Percentage change in total internal failure costs, 2019 to 2020;
f. Percentage change in total external failure costs, 2019 to 2020.
In: Accounting
Question 3
Comparative financial statement data of Tardis Plc
follow:
Tardis Plc
Comparative Income Statement
For the year ended 30 June 2020
| 2020 | 2019 | |
| Net Sales | 667,000 | 599,000 |
| Cost of Goods Sold | (378,000) | (283,000) |
| Gross Profit | 289,000 | 316,000 |
| Operating Expenses | 129,000 | 147,000 |
| Interest Expense | 57,000 | 41,000 |
| Total Expenses | 186,000 | 188,000 |
| Profit Before Incoming Tax | 103,000 | 128,000 |
| Income Tax Expense | 34,000 | 53,000 |
| Net Profit | 69,000 | 75,000 |
Tardis Plc
Comparative Balance Sheet
As of 30 June 2020
| 2020 | 2019 | 2018 | |
| Current Assets: | |||
| Cash | 37,000 | 40,000 | |
| Account Receivable | 208,000 | 151,000 | 183,000 |
| Inventories | 352,000 | 286,000 | 184,000 |
| Prepaid Expenses | 5,000 | 20,000 | |
| Total Current Assets | 602,000 | 497,000 | |
| Property Plant and Equipment | 287,000 | 276,000 | |
| Total Assets | 889,000 | 773,000 | 707,000 |
| Total Current Liabilities | 286,000 | 267,000 | |
| Long Term Liabilities | 245,000 | 235,000 | |
| Total Liabilities | 531,000 | 502,000 | |
| Preference Share Capital | 50,000 | 50,000 | |
| Ordinary Share Capital | 308,000 | 221,000 | 148,000 |
| Total Liabilities and Shareholders' Equity | 889,000 | 773,000 |
Other information:
1. The market price of Tardis Plc ordinary shares:
$36.75 at 30 June 2020,
and $50.50 at 30 June 2019
2. Ordinary shares outstanding 15,000 during 2020 and 14,000 during 2019
3. All sales of CREDIT
Required:
1. Calculate the following ratios for 2020
and 2019
(a) Current ratio
(b) Inventory turnover
(c) Times interest earned
(d) Return on Ordinary equity
(e) Earnings per share of ordinary shares
(f) Price /Earnings ratio
2. Comment on the company’s performance and decide whether Tardis’ financial position improved or deteriorated during 2020 and the investment attractiveness of its ordinary shares.
In: Accounting
[The following information applies to the questions displayed below.] Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars): 2019 2020 Sales $ 15,900 $ 19,900 Materials inspection 290 59 In-process (production) inspection 159 124 Finished product inspection 240 69 Preventive equipment maintenance 19 59 Scrap (net) 490 290 Warranty repairs 690 440 Product design engineering 149 260 Vendor certification 21 59 Direct costs of returned goods 265 79 Training of factory workers 39 139 Product testing—equipment maintenance 59 59 Product testing labor 200 89 Field repairs 69 39 Rework before shipment 230 199 Product-liability settlement 350 59 Emergency repair and maintenance 190 74 Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories. 2. Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results: a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020; b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars; c. Percentage change in total prevention costs, 2019 to 2020; d. Percentage change in total appraisal costs, 2019 to 2020; e. Percentage change in total internal failure costs, 2019 to 2020; f. Percentage change in total external failure costs, 2019 to 2020.
In: Accounting
One amount is missing in the following trial balance of proprietary accounts, and another is missing from the trial balance of budgetary accounts of the Save Our Resources Commission of the federal government. This trial balance was prepared before budgetary accounts were adjusted, such as returning unused appropriations. The debits are not distinguished from the credits.
| SAVE OUR RESOURCES COMMISSION | |||
| Preclosing Trial Balance | |||
| September 30, 2020 | |||
| Proprietary accounts: | |||
| Accounts Payable | $ | 135,000 | |
| Accumulated Depreciation—Plant and Equipment | 5,351,000 | ||
| Appropriations Used | 4,501,000 | ||
| Fund Balance with Treasury—2020 | ? | ||
| Operating Materials and Supplies | 64,000 | ||
| Cumulative Results of Operations—10/1/19 | 1,010,000 | ||
| Operating/Program Expenses |
2,151,000 |
||
| Depreciation and Amortization | 751,000 | ||
| Plant and Equipment | 8,112,000 | ||
| Unexpended Appropriations—2020 | 411,000 | ||
| Budgetary accounts: | |||
| Other Appropriations Realized—2020 | ? | ||
| Expended Authority—2020 | 4,501,000 | ||
| Undelivered Orders—2020 | 311,000 | ||
| Allotments—2020 | 101,000 | ||
In completing the assignment, assume that all assets are entity assets, Fund Balance with Treasury is an intragovernmental asset, and all other assets are governmental. Also, assume that Other Appropriations Realized—2019 were zero.
Required
I have been able to separate out the Preclosing Trial Balance into debits and credits and came up with a funds balance of $330,000 and an other appropriations of $4,913,000. The text provides a similar Statement of Budgetary Resources, but I can't seem to get it to work
The table provided is as follows (bold lines are the blanks that need to be filled in):
Budgetary Resources:
Budgetary Authority
Status of Budgetary Resources:
New Obligations & Upward Adjustments
Total Status of Budgetary Resources
Changes in Obligated Balance
Unpaid Obligations, Beginning of the Year
New Obligations & Upward Adjustments
Outlays (Disbursements)
Unpaid Obligations, End of Year
In: Accounting
Suppose the incidence rate of myocardial infarction (MI)
was 5 per 1000 among 45- to 54-year-old men in 2000.
To look at changes in incidence over time, 5000 men in this
age group were followed for 1 year starting in 2010. Fifteen
new cases of MI were found.
7.12 Using the critical-value method with α = .05, test
the
hypothesis that incidence rates of MI changed from 2000
to 2010.
7.13 Report a p-value to correspond to your answer to
Problem 7.12.
Suppose that 25% of patients with MI in 2000 died within
24 hours. This proportion is called the 24-hour case-fatality
rate.
7.14 Of the 15 new MI cases in the preceding study,
5 died within 24 hours. Test whether the 24-hour case
fatality
rate changed from 2000 to 2010.
7.15 Suppose we eventually plan to accumulate 50 MI
cases during the period 2010–2015. Assume that the
24-hour case-fatality rate is truly 20% during this period.
How much power would such a study have in distinguishing
between case-fatality rates in 2000 and 2010–2015
In: Statistics and Probability