Required information
[The following
information applies to the questions displayed
below.]
In 2018, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,204,000 | $ | 3,192,000 | $ | 2,424,400 | |||
| Estimated costs to complete as of year-end | 5,396,000 | 2,204,000 | 0 | ||||||
| Billings during the year | 2,140,000 | 3,256,000 | 4,604,000 | ||||||
| Cash collections during the year | 1,870,000 | 3,200,000 | 4,930,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
In: Accounting
Rosie Dry Cleaning was started on January 1, Year 1. It
experienced the following events during its first two years of
operation:
Events Affecting Year 1
Events Affecting Year 2
Required
a. Record the events for Year 1 and Year 2 in
T-accounts.
In: Accounting
The industry averages for 2019 that the company refers to as its benchmarks are provided as follows:
Industry Average
Gross profit ratio 50.11%
Net income to revenue ratio (after tax) 22.02%
Return on shareholders’ equity (after tax) 35.66%
Current ratio 1.85 : 1
Quick ratio 1.08 : 1
Accounts receivable collection period (in days) 14.83 days
Company A:
Gross profit ratio 54%
Net income to revenue ratio (after tax) 25.76%
Return on shareholders’ equity (after tax) 33.73%
Current ratio 1.54
Quick ratio 0.41
Accounts receivable collection period (in days) 21.90 days
Use the above ratios of company A performance compare to the industry averages and provide relevant comments under the headings of ‘profitability’ and ‘liquidity.
In: Accounting
Presented below is the adjusted trial balance of Larkspur
Corporation at December 31, 2017.
|
Debit |
Credit |
||
|
Cash |
$ ? |
||
|
Supplies |
1,300 |
||
|
Prepaid Insurance |
1,100 |
||
|
Equipment |
48,100 |
||
|
Accumulated Depreciation-Equipment |
$ 4,100 |
||
|
Trademarks |
1,050 |
||
|
Accounts Payable |
10,100 |
||
|
Salaries and Wages Payable |
600 |
||
|
Unearned Service Revenue |
2,100 |
||
|
Bonds Payable (due 2024) |
9,100 |
||
|
Common Stock |
10,100 |
||
|
Retained Earnings |
25,100 |
||
|
Service Revenue |
10,100 |
||
|
Salaries and Wages Expense |
9,100 |
||
|
Insurance Expense |
1,500 |
||
|
Rent Expense |
1,300 |
||
|
Interest Expense |
1,000 | ||
| Total | $ ? | $ ? |
Additional information:
| 1. | Net loss for the year was $2,800. | |
| 2. | No dividends were declared during 2017. |
Prepare a classified balance sheet as of December 31, 2017.
(List Current Assets in order of
liquidity.)
In: Accounting
The adjusted trial balance of Rayan Financial Planners appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:
1. an income statement.
2. a retained earnings statement.
3. a statement of financial position.
RAYAN FINANCIAL PLANNERS
Adjusted Trial Balance
December 31, 2016
Debit Credit
Cash .................................................................................................. € 4,400
Accounts Receivable......................................................................... 2,200
Office Supplies.................................................................................. 1,800
Office Equipment.............................................................................. 15,000
Accumulated Depreciation—Office Equipment............................... € 4,000
Accounts Payable.............................................................................. 3,800
Unearned Revenue............................................................................. 5,000
Share Capital–Ordinary..................................................................... 10,000
Retained Earnings.............................................................................. 4,400
Dividends ......................................................................................... 2,500
Service Revenue................................................................................ 3,700
Office Supplies Expense.................................................................... 600
Depreciation Expense........................................................................ 2,500
Rent Expense..................................................................................... 1,900 ______
€30,900 €30,900
In: Accounting
Talia’s Tutus is considering purchasing a new sewing machine. The old machine it has right now was bought 2 years ago for $30,000, with an assume life of 6 years and an assume salvage value of $5,000. The firm uses straight-line depreciation. The old machine can be sold today for $25,000. If the firm continues using the old machine, it will be salvaged at the end of its life. The new machine can be purchased today for $40,000. The new machine falls in the MACRS 3-year class. With the new sewing machine, the firm is expected to have an additional revenue of $15,000 every year. The variable cost is 40% of the revenue, and the fixed cost is $3,000 each year. If the opportunity cost of capital is 12%, corporate tax rate is 35%, and capital gain tax is 15%, what are the project’s NPV and IRR?
In: Finance
The adjusted trial balance of Rayan Financial Planners appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:
1. an income statement.
2. a retained earnings statement.
3. a statement of financial position.
RAYAN FINANCIAL PLANNERS
Adjusted Trial Balance
December 31, 2016
Debit Credit
Cash .................................................................................................. € 4,400
Accounts Receivable......................................................................... 2,200
Office Supplies.................................................................................. 1,800
Office Equipment.............................................................................. 15,000
Accumulated Depreciation—Office Equipment............................... € 4,000
Accounts Payable.............................................................................. 3,800
Unearned Revenue............................................................................. 5,000
Share Capital–Ordinary..................................................................... 10,000
Retained Earnings.............................................................................. 4,400
Dividends ......................................................................................... 2,500
Service Revenue................................................................................ 3,700
Office Supplies Expense.................................................................... 600
Depreciation Expense........................................................................ 2,500
Rent Expense..................................................................................... 1,900 ______
€30,900 €30,900
In: Accounting
Are America's top chief executive officers (CEOs) really worth
all that money? One way to answer this question is to look at row
B, the annual company percentage increase in revenue,
versus row A, the CEO's annual percentage salary increase
in that same company. Suppose that a random sample of companies
yielded the following data:
|
B: Percent increase for company |
21 | 10 | 15 | 23 | 15 | 29 | 20 | 30 |
|
A: Percent increase for CEO |
17 | 1 | 11 | 28 | 16 | 34 | 12 | 22 |
Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Assume that the distribution of differences is approximately normal, mound-shaped and symmetric. Use a 5% level of significance. What is the alternate hypothesis?
In: Math
John is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company such as random access memory (RAM) on a competitive market. In order to maximise profit in the short run, he employed an economist to estimate the demand curve, which he was able to use to derive the marginal revenue (MR) from his product as: ??=70−16?. The economist also derived the marginal cost function (MC) as: ??=6?−51.
(i) Find the total revenue function and deduce the corresponding demand equation.
(ii) Find the total cost function if the fixed cost is 400.
(iii)Determine the number of laptops that maximizes the company’s profit.
(iv)How much should the firm charge for one computer?
(v)Find the total profit at the profit maximizing level of output.
In: Economics
1. Popper Enterprises factors $700,000of its accounts receivables to Third Bank with recourse for a finance charge of 4?%. The finance company retains an amount equal to? 7% of the accounts receivable for possible adjustments. Third Bank will return the hold back to Popper when it collects the receivables. In? addition, the fair value of the recourse liability is estimated at? $20,000. What amount of cash would Popper receive as a result of this? transaction?
A. $623,000 B. $665,000 C. $680,000 D. $700,000
2. Which ratio indicates the effectiveness of a? company's credit extension? policy?
A. inventory turnover B. accounts payable turnover C. days inventory on hand D. days sales outstanding
3. What type of account is Discount on Note? Receivable?
A. asset B. contra?revenue C. revenue D. contra?asset
In: Accounting