Cobalt Ceramics, Inc., acquired a manufacturing facility (building) from Nickel Construction Company. Nickel completed construction of the facility on January 1, 2021. In payment for the $6 million lighthouse, Cobalt issued a five-year installment note to be paid in five equal payments at the end of each year. The payments include interest at the rate of 5.4%.
Instructions
In: Accounting
RT Construction
RT Construction builds fine crafted robotics. Each robot sells for $125 and requires 4A, 2B, and 3C. During the period, RT bought 20A, 22B, and 40C on account for the same prices as listed in the beginning balance sheet. RT uses FIFO inventory costing. (All numbers are in $100s, except stock shares.) RT sold 12 robots.
Other Costs = Building rent (paid in cash this period) $100 (1/2 sales, ½ production)
Labor (accrued) $50 each (1 corporate, 3 production)
Beginning Balance Sheet
Cash $200
Accounts Receivable 100
Inventory A 50 @ $10 each 500
B 10 @ $5 each 50
C 3 @ $8 each 24
Machinery 300
Accumulated Depreciation 100 200
Land 250
Total Assets $ ?
Accounts Payable $120
Bonds Payable 300
Common Stock 400
Retained Earnings ?
Total Liabilities and Stockholders’ Equity $ ?
Other activities:
Sold ½ robots for cash and ½ on AR.
Sold land with cost $80 for $100 cash.
Machinery depreciation is $20.
Bad Debt Expense is 5% of ending AR (no beginning Allowance balance)
Bought patent by issuing $60 short-term note payable.
Accrued interest expense of $25 (not paid at yearend).
Tax rate is 20% (not paid at yearend). If there is a pretax loss, the tax rate results in a tax benefit.
There were 10,000 shares of common stock outstanding the full year.
Paid $110 dividend.
Develop a Multiple Step Income Statement, Statement of Owners’
Equity (RE and Common
Stock columns), and Balance Sheet. The time period is Q1, ending
March 31, 2018.
In: Accounting
On March 1, 2017, Shamrock Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,390,000. The building was completed by October 31, 2019. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below: 2017 2018 2019 Contract costs incurred during the year $3,003,300 $2,179,700 $2,117,000 Estimated costs to complete the contract at 12/31 3,386,700 2,117,000 –0– Billings to Fabrik during the year 3,240,000 3,460,000 1,690,000
(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank.)
(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
In: Accounting
Problem 15-27 Gubser Welding, Inc., operates a welding service for construction and automotive repair jobs. Assume that the arrival of jobs at the company's office can be described by a Poisson probability distribution with an arrival rate of two jobs per 8-hour day. The time required to complete the jobs follows a normal probability distribution, with a mean time of 3.2 hours and a standard deviation of 2 hours. Answer the following questions, assuming that Gubser uses one welder to complete all jobs:
What is the mean arrival rate in jobs per hour? If required, round your answer to two decimal places.
What is the mean service rate in jobs per hour? If required, round your answer to four decimal places.
What is the average number of jobs waiting for service? If required, round your answer to three decimal places.
What is the average time a job waits before the welder can begin working on it? If required, round your answer to one decimal place.
What is the average number of hours between when a job is received and when it is completed? If required, round your answer to one decimal place. hours
What percentage of the time is Gubser's welder busy?
In: Statistics and Probability
On March 1, 2017, Oriole Construction Company contracted to
construct a factory building for Fabrik Manufacturing Inc. for a
total contract price of $8,410,000. The building was completed by
October 31, 2019. The annual contract costs incurred, estimated
costs to complete the contract, and accumulated billings to Fabrik
for 2017, 2018, and 2019 are given below:
|
2017 |
2018 |
2019 |
||||
| Contract costs incurred during the year | $2,916,400 | $2,079,200 | $2,244,400 | |||
| Estimated costs to complete the contract at 12/31 | 3,423,600 | 2,244,400 | –0– | |||
| Billings to Fabrik during the year | 3,200,000 | 3,520,000 | 1,690,000 |
(a) Using the percentage-of-completion method,
prepare schedules to compute the profit or loss to be recognized as
a result of this contract for the years ended December 31, 2017,
2018, and 2019. (Ignore income taxes.) (If answer is 0,
please enter 0. Do not leave any fields blank.)
(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
In: Accounting
World of Leasing Limited (WLL) is trying to determine the lease payment it should quote for the construction trucks it is considering purchasing for leasing. Assume that each truck costs $200,000, has a 5 year useful life and a CCA rate of 50%. Before tax operating cost of the truck is $50,000 per year paid by the owner (lessor) of the asset. The corporate tax rate is 40%, before tax cost of debt is 8%, and risk free rate is 4%. Cost of capital is 10%. CCA tax shield will be claimed at the end of the year and the lease payment and operating costs will be at the beginning of the year.
a. Determine the annual lease payment if the resale value of the truck is $60,000 after 5 years. Assume asset pool is open.
b. Determine the annual lease payment if the resale value of the truck is $60,000 after 5 years. Assume asset pool is closed.
c. Continuing with b) above, suppose OnlyLease Inc. (OLI) has a corporate tax rate of 0%, cost of debt is 8%, and cost of capital is 12%. What is the maximum lease payment OLI would be willing to make?
d. Within what range of values WLL and OLI can make a deal?
In: Finance
World of Leasing Limited (WLL) is trying to determine the lease payment it should quote for the construction trucks it is considering purchasing for leasing. Assume that each truck costs $200,000, has a 5 year useful life and a CCA rate of 50%. Before tax operating cost of the truck is $50,000 per year paid by the owner (lessor) of the asset. The corporate tax rate is 40%, before tax cost of debt is 8%, and risk free rate is 4%. Cost of capital is 10%. CCA tax shield will be claimed at the end of the year and the lease payment and operating costs will be at the beginning of the year.
a. Determine the annual lease payment if the resale value of the truck is $60,000 after 5 years. Assume asset pool is open.
b. Determine the annual lease payment if the resale value of the truck is $60,000 after 5 years. Assume asset pool is closed.
c. Continuing with b) above, suppose OnlyLease Inc. (OLI) has a corporate tax rate of 0%, cost of debt is 8%, and cost of capital is 12%. What is the maximum lease payment OLI would be willing to make?
d. Within what range of values WLL and OLI can make a deal?
In: Finance
A simple random sample of 400 persons is taken to estimate the percentage of Republicans in a large population. It turns out that 210 of the people in the sample are Republicans. True or False and explain.
a. The sample percentage is 52.5%; the SE for the sample percentage is 2.5%.
b. 52.5% ± 2.5% is a 75%-confidence interval for the population percentage.
c. 52.5% ± 5% is a 95%-confidence interval for the sample percentage.
d. 52.5% ± 5% is a 95%-confidence interval for the population percentage.
e. There is about a 95% probability for the percentage of Republicans in the population to be in the range 52.5% ± 5%
In: Statistics and Probability
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Cost Retail Beginning inventory $ 83,000 $ 173,000 Purchases 368,000 573,000 Freight-in 8,300 Purchase returns 6,300 10,300 Net markups 15,300 Net markdowns 11,300 Normal spoilage 2,300 Abnormal spoilage 4,405 7,300 Sales 533,000 Sales returns 9,300 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,300.
Required: 1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application. (Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.)
Estimated ending inventory at retail?
Estimated ending inventory at cost?
Estimated Cost of Good sold?
In: Accounting
Please describe in terms of molecular motion and inter-chain attractive forces, the motion of polymer chains of a viscous polymer film as it is cooled at a constant rate as the sample moves through three temperature regimes:
a. Above Tg
b. Near or at Tg
c. Below Tg
In: Chemistry