6. You are saving for a new house and you put $25,000 per year in an account paying 4.5%. The first payment is made today.
A.) How much will you have at the end of 3 years? (Show Work)
B. Also build a table/schedule to show your account each year (include beginning balance and ending balance each year, interest earned).
In: Finance
The following information was taken from the records of Raiders Inc. for the year 2017. Income tax applicable to income from continuing operations $260,000; income tax applicable to loss on discontinued operations $36,000; income tax applicable to unusual gain $45,000; income tax applicable to unusual loss $28,000. There is also unrealized holding gain on available-for-sale securities $20,000.
| Unusual gain $145,000 | Cash dividends declared $200,000 |
| Loss on discounted operations $115,000 | Retained earnings January 1, 2017 $850,000 |
| Administrative expenses $336,000 | Cost of goods sold $1,200,000 |
| Rent Revenue $60,000 | Selling expenses $430,000 |
| Unusual loss $90,000 | Sales $2,700,000 |
| Shares outstanding during 2017 were 200,000. |
Instructions:
(a). Prepare multiple-step income statement for 2017.
(b). Prepare retained earnings statement for 2017.
(c). Show how comprehensive income is reported using the two statement format.
In: Accounting
In: Nursing
In year 0, Longworth Partnership purchased a machine for $57,250
to use in its business. In year 3, Longworth sold the machine for
$44,300. Between the date of the purchase and the date of the sale,
Longworth depreciated the machine by $24,900. (Loss amounts
should be indicated by a minus sign. Leave no answer blank. Enter
zero if applicable.)
a. What is the amount and character of the gain (loss)
Longworth will recognize on the sale?
|
b. What is the amount and character of the gain (loss) Longworth will recognize on the sale if the sale proceeds are increased to $69,000?
|
c. What is the amount and character of the gain (loss) Longworth will recognize on the sale if the sale proceeds are decreased to $20,200?
|
In: Accounting
DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.
| Month | ||||||||
| 1 | 2 | 3 | 4 | |||||
| Throughput time (days) | ? | ? | ? | ? | ||||
| Delivery cycle time (days) | ? | ? | ? | ? | ||||
| Manufacturing cycle efficiency (MCE) | ? | ? | ? | ? | ||||
| Percentage of on-time deliveries | 91 | % | 86 | % | 82 | % | 78 | % |
| Total sales (units) | 3030 | 2900 | 2752 | 2649 | ||||
Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:
| Average per Month (in days) | ||||||||||||||||||||||||||||||||||||||||||||||
| 1 | 2 | 3 | 4 | |||||||||||||||||||||||||||||||||||||||||||
| Move time per unit | 0.9 | 0.7 | 0.9 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||
| Process time per unit | 2.9 | 2.8 | 2.7 | 2.6 | ||||||||||||||||||||||||||||||||||||||||||
| Wait time per order before start of production | 19.0 | 20.8 | 23.0 | 24.8 | ||||||||||||||||||||||||||||||||||||||||||
| Queue time per unit | 4.4 | 5.1 | 5.9 | 6.8 | ||||||||||||||||||||||||||||||||||||||||||
| Inspection time per unit | 0.7 | 0.9 | 0.9 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||
|
Required 1 1-a. Compute the throughput time for each month. 1-b. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)
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2. Evaluate the company’s performance over the last four months. (Indicate the effect of each trend by selecting "Favorable" or "Unfavorable" or "None" for no effect (i.e., zero variance).
|
3-a. (Month 5) Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
3-b. (Month 6) Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.
(Round your answers to 1 decimal place.)
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In: Accounting
(a) Prepare a Statement of Cash Flows for the year ended 30 June 2020 using the direct method, ignoring GST.
Show all workings on the Workings page.
(b) Using the relevant information from the question above, identify two (2) specific items (including their values) which causes a difference between Net Profit and Net Cash from Operating Activities and analyse why it causes a difference.
The following financial statements relate to Clarke Ltd for the financial year ended 30 June 2020.
Balance Sheet as at 30 June
| 2020 | 2019 | |
| ASSETS | $ | $ |
| Current Assets | ||
| Cash | 212,500 | 176,000 |
| Accounts Receivable | 100,000 | 200,000 |
| Allowance for Doubtful Debts | (10,000) | (5,000) |
| Inventory | 45,000 | 42,000 |
| Prepaid rent | 5,000 | 2,500 |
| Total current assets | 352,000 | 415,000 |
| Non-Current Assets | ||
| Land | 550,000 | 500,000 |
| Equipment | 900,000 | 800,000 |
| Accumulated Depreciation - Equipment | (650,000) | (560,000) |
| Total non-current assets | 800,000 | 740,000 |
| TOTAL ASSETS | 1,152,500 | 1,155,500 |
| LIABILITIES & EQUITY | ||
| Liabilities | ||
| Accounts Payable | 45,000 | 35,000 |
| Wages Payable | 30,000 | 15,000 |
| Income Tax Payable | 28,000 | 24,000 |
| Loan Payable | -- | 400,000 |
| Total liabilities | 103,000 | 474,000 |
| Owner's Equity | ||
| Share Capital | 750,000 | 500,000 |
| Retained Profits | 249,500 | 181,500 |
| Revaluation Surplus | 50,000 | 0 |
| Total Equity | 1,049,500 | 681,500 |
| TOTAL LIABILITIES AND EQUITY | 1,152,500 | 1,155,500 |
Clarke Limited's Income Statement for the year ended June 2020
| Revenue | $ |
| Net Sales | 750,000 |
| Cost of Sales | 225,000 |
| Gross Profit | 525,000 |
| Expenses | |
| Wage expense | 300,000 |
| Depreciation Expense - Equipment | 90,000 |
| Bad Debt Expense | 10,000 |
| Rent expense | 4,000 |
| Interest expense | 3,000 |
| Total expenses | 407,000 |
| Net Profit Before Tax | 118,000 |
| Income Tax Expense | 35,400 |
| Net Profit After Tax | 82,600 |
Additional information:
Interest expense is classified as an operating cash flow.
The company paid dividends in 2020.
Land was revalued during the 2020 financial year.
In: Accounting
|
A mortgage broker is offering a $281,000 20-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.7 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.7 percent APR. |
|
What are the monthly payments in the first two years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Monthly payment | $ |
|
What are the monthly payments after the second year? (Round the dollar amounts to the nearest cent, but do not round other values in your interim calculations. Round your final answer to 2 decimal places.) |
| Monthly payment | $ |
References
In: Finance
A mortgage broker is offering a $284,000 20-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 5.0 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 8.0 percent APR.
|
What are the monthly payments in the first two years? What are the monthly payments after the second year |
In: Finance
CALIFORNIA COMPANY
…. Uses job order costing. At the start of the year, January 1, the company had work-in-process which consisted of the following jobs and costs:
|
Job 1 |
Job 2 |
Job 3 |
|
|
Direct materials |
$ 1,600 |
$ 2,000 |
$ 850 |
|
Direct labor |
1,900 |
1,200 |
900 |
|
Applied overhead |
1,710 |
1,080 |
810 |
During the first quarter 3 more jobs were started – Job 4, Job 5 and Job 6. The following cost information is available for costs incurred during the month of January:
|
Job 1 |
Job 2 |
Job 3 |
Job 4 |
Job 5 |
Job 6 |
|
|
Direct materials |
1,800 |
1,735 |
6,550 |
4,500 |
1,300 |
600 |
|
Direct labor |
1,000 |
1,400 |
4,200 |
1,800 |
800 |
860 |
During the quarter, jobs 1, 3, 4 and 6 were all completed. In addition, Jobs 3 and 6 were sold before the end of the quarter.
The company uses normal costing and closes under- and over-applied overhead directly to Cost of Goods Sold. There was no finished-goods inventory at the start of the period. Selling and administrative expenses totaled $3,986 for the quarter. Actual overhead for the quarter totaled $19,000. The company had no other non-operating gains or losses. Assume a tax rate of 35%.
Required:
In: Accounting
The Tanner Company has provided the following information after year-end adjustments:
What was the amount of Tanner’s net sales?
Multiple Choice
$2,056,500.
$2,571,000.
$2,541,500.
$2,600,500.
In: Accounting