The following situation is related to the activities and events of Superman Company in the year 2018. The financial year end for the company is 31 December.
In the past, the company expensed borrowing costs on construction of its factory. The company has changed its policy this year and now capitalizes as it is incurred. In 2017 accounts, borrowing costs expensed was $ 2,500,000 and this year's borrowing costs incurred was $ 3,800,000. The factory is still under construction.
Identify the type of accounting changes and discuss the proper accounting treatment.
In: Accounting
Review the following SG&A budget that was prepared at the beginning of the current year. The economy appears to be slowing, and sales are now expected to run only 75% of plan. How much can now be expected to result for total SG&A?
The only fixed cost that can be reduced relates to the advertising campaign. What are the possible impacts of attempting to save money by cutting a portion of the advertising budget?
|
Selling, General, and Administrative Budget |
|
|
For the Year Ending December 31, 20X7 |
|
|
Estimated units sold |
87,500 |
|
X Per unit variable SG&A |
X $ 5.50 |
|
Total variable SG&A |
$ 481,250 |
|
Fixed SG&A |
|
|
Salaries |
$ 467,500 |
|
Office |
112,000 |
|
Advertising |
292,500 |
|
Other |
39,250 |
|
Total fixed SG&A |
$ 911,250 |
|
Total budgeted SG&A |
$ 1,392,500 |
Worksheet 7
The following revised budget should reflect only 75% of the sales volume included in the original plan) units:
|
Selling, General, and Administrative Budget |
|
|
For the Year Ending December 31, 20X7 |
|
|
Estimated units sold |
|
|
X Per unit variable SG&A |
|
|
Total variable SG&A |
|
|
Fixed SG&A |
|
|
Salaries |
|
|
Office |
|
|
Advertising |
|
|
Other |
|
|
Total fixed SG&A |
|
|
Total budgeted SG&A |
|
In: Accounting
Given the information in the table, what is the price of the stock in YEAR 1?
|
Today’s Dividend |
$4.62 |
|
Discount Rate |
9.31% |
|
Growth rate in dividends 0 to 1 |
9.58% |
|
Growth rate in dividends 1 to 2 |
6.56% |
|
Growth rate in dividends 2 to 3 |
5.79% |
|
Growth rate in dividends 3 onward |
3.34% |
In: Finance
The national average on a certification exam in the US last year was 68. For a sample of participants (n=64) who participated in a preparatory program before the exam, the mean was 76 with a sample standard deviation of 4. Using alpha = .05, is there a statistically significant difference between the study participants’ mean and the national average?
In: Statistics and Probability
Simple interest is normally used for loans with a term of a year or less.
The simple interest formula is I = Prt (Interest = Principal * rate * time) . This is one way that interest is calculated on a loan or investment.
Create a loan scenario: Tell a story about the purpose of the loan, who was involved, and explain the terms and conditions of the loan. Present your scenario to the class; make sure it includes the principal amount, interest rate, and time period.
In: Accounting
An enterprise is expected to pay a dividend of $0.65 in one year. The dividend is expected to grow at a rate of 12% per year for the next five years as the firm goes through a period of rapid growth. After that, it is expected to grow at an average rate of 7% per year forever. If the required return is 22%, what is the value of a share?
In: Finance
Given the information in the table, what is the price of the stock in YEAR 1?
|
Today’s Dividend |
$3.19 |
|
Discount Rate |
7.45% |
|
Growth rate in dividends 0 to 1 |
7.12% |
|
Growth rate in dividends 1 to 2 |
7.25% |
|
Growth rate in dividends 2 to 3 |
5.40% |
|
Growth rate in dividends 3 onward |
4.65% |
Please do on piece of paper or show work and not on excel so i can follow.
In: Finance
On march 31,2019,the balance of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows
| Particulars | Amount$ |
| Accumulated Depreciation - Building | 3,00,000 |
| Administrative expenses | 2,16,000 |
| Building | 10,00,000 |
| Cash | 70,000 |
| Cost of merchandise sold | 15,20,000 |
| Interest expense | 4,000 |
| Kathy Melman,Capital | 6,34,800 |
| Kathy Melman, Drawing | 70,000 |
| Merchandise inventory | 3,92,000 |
| Notes payable | 1,00,000 |
| Office supplies | 8,000 |
| Salaries payable | 3,200 |
| Sales | 25,64,000 |
| Selling expenses | 2,86,000 |
| Store Supplies | 36,000 |
Prepare a multiple step income statement for the year ended march 31,2019
In: Accounting
If you deposit $2,000 at the end of each year into an IRA account that is expected to earn 8% per year simple interest, how much will be in the account in 30 years? (Answer to the nearest dollar)
In: Finance
The management of Hess, Inc., is developing a flexible budget for the upcoming year. It was not pleased with the small amount of net income the budget showed at all sales levels and is contemplating using a less expensive material. This action reduces direct material cost by $1 per unit. What would be the effects on financial statements and a flexible budget if management takes this approach? Are there other factors that need to be considered?
In: Accounting