) Hitaki Sales Inc. began the month of July with
$562,500 of current assets, a current ratio of 2.25:1, and an
acid-test ratio of 1.00:1. During the month, it completed the
following transactions (the company uses a perpetual inventory
system). (50 points)
July 3 Purchased $67,500 of merchandise
inventory on credit.
10 Sold merchandise inventory that cost
$75,000 for $120,000 cash.
12 Collected $40,000 cash on an account
receivable.
14 Paid $32,000 cash to settle an account
payable.
16 Wrote off a $10,000 bad debt against
the Allowance for Doubtful Accounts.
20 Declared a $2 per share cash dividend
on its 30,000 shares of outstanding common stock.
22 Paid the dividend declared on July
22.
24 Borrowed $75,000 cash by giving the bank a 90-day,
6% note.
26 Borrowed $75,000 cash by signing a
long-term secured note.
27 Used the $80,000 cash proceeds from the
notes to buy new machinery.
Prepare a table showing Kiwi Java Time’s (1) current ratio, (2)
acid-test ratio, and (3) working capital, after each transaction.
Round ratios to two decimals.
Transaction Current
Quick
Current
Current
Acid-Test
Working
Assets Assets
Liabilities Ratio
Ratio
Capital
Beginning
July 3
.
Balance
July 10
.
Balance
July 12
.
Balance
July 14
.
Balance
July 16
.
Balance
July 20
.
Balance
July 22
.
Balance
July 24
.
Balance
July 26
.
Balance
July 27
.
Balance
.
In: Accounting
Hitaki Sales Inc. began the month of July with $562,500 of current assets, a current ratio of 2.25:1, and an acid-test ratio of 1.00:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
(PLEASE SHOW SOME OF YOUR WORK SO IT IS EASIER TO FOLLOW, THANK YOU)
July 3 Purchased $67,500 of merchandise inventory on credit.
10 Sold merchandise inventory that cost $75,000 for $120,000 cash.
12 Collected $40,000 cash on an account receivable.
14 Paid $32,000 cash to settle an account payable.
16 Wrote off a $10,000 bad debt against the Allowance for Doubtful Accounts.
20 Declared a $2 per share cash dividend on its 30,000 shares of outstanding common stock.
22 Paid the dividend declared on July 22.
24 Borrowed $75,000 cash by giving the bank a 90-day, 6% note.
26 Borrowed $75,000 cash by signing a long-term secured note.
27 Used the $80,000 cash proceeds from the notes to buy new machinery.
Prepare a table showing Kiwi Java Time’s (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
Transaction Current Quick Current Current Acid-Test Working
Assets Assets Liabilities Ratio Ratio Capital
Beginning
July 3 ________________________________________ .
Balance
July 10
______________ .
Balance
July 12
.
Balance
July 14 .
Balance
July 16 .
Balance
July 20 .
Balance
July 22 .
Balance
July 24 .
Balance
July 26 .
Balance
July 27 .
Balance .
In: Accounting
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
What is the probability that the first jelly bean you draw is pink?
QUESTION 2
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
Assume you eat the pink jelly bean from question 1. What is the chance of randomly selecting a yellow or purple jelly bean next?
QUESTION 3
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
You have now eaten one pink and one purple jelly bean. What is the probability of selecting anything other than a black jelly bean?
QUESTION 4
Imagine that you really love jelly beans and stock pile them after Easter every year. The best variety is Brach’s Jelly Eggs which has seven varieties: Red, Pink, White, Black, Purple, Green, and Yellow. In one bag, you find 32 Red, 27 Pink, 30 White, 12 Black, 25 Purple, 26 Green, and 27 Yellow.
Now you have eaten a pink, purple and green jelly bean. What is the probability that you select a white jelly bean followed by a red jelly bean?
In: Statistics and Probability
Discuss how the OTC markets are becoming more like exchange-traded markets as a result of post-crisis regulations. What role do CCPs play and how are they similar to exchange clearing houses? Discuss futures vs. OTC trades and margin requirements.
In: Finance
In: Finance
A fund manager of IMD Securities Ltd quoted:
‘GC Tech has a very high beta since its stock has traded as high as
$253 and as low as its current $64 during this year.’
Do you agree with the fund manager? Explain.
In: Finance
Frusciante, Inc. has 285,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 6.9 percent paid semiannually, and 7 years to maturity. The current YTM on the bonds is 6.4 percent. The company also has 9 million shares of stock outstanding, with a market price of $27 per share. What is the company’s market value debt–equity ratio?
In: Accounting
In: Accounting
An employee of a small software company in Minneapolis bikes to
work during the summer months. He can travel to work using one of
three routes and wonders whether the average commute times (in
minutes) differ between the three routes. He obtains the following
data after traveling each route for one week.
| Route 1 | 32 | 34 | 37 | 32 | 26 |
| Route 2 | 23 | 22 | 30 | 20 | 24 |
| Route 3 | 20 | 27 | 25 | 25 | 27 |
Click here for the Excel Data File
a-1. Construct an ANOVA table. (Round
intermediate calculations to at least 4 decimal places. Round
"SS", "MS", "p-value" to 4 decimal
places and "F" to 3 decimal places.)
a-2. At the 1% significance level, do the
average commute times differ between the three routes. Assume that
commute times are normally distributed.
b. Use Tukey’s HSD method at the 1%
significance level to determine which routes' average times differ.
(You may find it useful to reference the q
table). (If the exact value for
nT − c is not found in the
table, use the average of corresponding upper & lower
studentized range values. Negative values should be indicated by a
minus sign. Round your answers to 2 decimal
places.)
In: Statistics and Probability
Job order cost accounting for a service company
The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:
| July 3. | Charged 500 hours of professional (lawyer) time at a rate of $180 per hour to the Obsidian Co. breech of contract suit to prepare for the trial |
| 10. | Reimbursed travel costs to employees for depositions related to the Obsidian case, $16,800 |
| 14. | Charged 150 hours of professional time for the Obsidian trial at a rate of $270 per hour |
| 18. | Received invoice from consultants Wadsley and Harden for $51,100 for expert testimony related to the Obsidian trial |
| 27. | Applied office overhead at a rate of $75 per professional hour charged to the Obsidian case |
| 31. | Paid administrative and support salaries of $34,600 for the month |
| 31. | Used office supplies for the month, $11,700 |
| 31. | Paid professional salaries of $189,300 for the month |
| 31. | Billed Obsidian $281,400 for successful defense of the case |
a. Provide the journal entries for each of these transactions.
| July 3 | |||
| July 10 | |||
| July 14 | |||
| July 18 | |||
| July 27 | |||
| July 31 Admin. sal. | |||
| July 31 Supplies | |||
| July 31 Prof. sal. | |||
| July 31 Billed | |||
| July 31 Cost | |||
b. How much office overhead is over- or
underapplied? Enter your answer as a positive number.
$
c. Determine the gross profit on the Obsidian
case, assuming that over- or underapplied office overhead is closed
monthly to cost of services.
$
In: Accounting