An investment project will cost the firm $200,000 now. The additional cash flows earned as a result of the investment are $30,000 in the first year; $50,000 in the second year; $75,000 in the third year; $90,000 in the fourth year; and $120,000 in the fifth year. After that, the investment results in no further increases in cash flows. Assuming cash flows are evenly distributed throughout the year, the payback period for this investment is ______.
A. five years
B. four years
C. three and a half years
D. We cannot answer this question without knowing the cost of capital.
In: Finance
Discuss the prevalence of the use of earned-value analysis to track and control costs on construction projects?
In: Civil Engineering
What is the amount of interest earned in the 33rd semi-annual deposit interval of a sinking fund that is set up to pay back a debt of $220000 over 19 years? The fund earns 4.62% compounded semi-annually and the deposits are made semi-annually.
In: Finance
Profit Center Responsibility Reporting A-One Freight Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 20Y3. Revenues—Air Division $ 1,104,600 Revenues—Rail Division 1,295,000 Revenues—Truck Division 2,401,200 Operating Expenses—Air Division 700,000 Operating Expenses—Rail Division 770,700 Operating Expenses—Truck Division 1,452,100 Corporate Expenses—Shareholder Relations 168,000 Corporate Expenses—Customer Support 613,800 Corporate Expenses—Legal 207,900 General Corporate Officers’ Salaries 371,000 The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the company’s point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered:
| Air | Rail | Truck | ||||
| Number of customer contacts | 5,000 | 5,900 | 8,900 | |||
| Number of hours billed | 800 | 1,300 | 1,200 | |||
Division management does not control activities related to the shareholder relations department and general corporate officers’ salaries.
Required:
a. Prepare quarterly income statements showing operating income for the three divisions. Use three column headings: Air, Rail, and Truck.
| A-One Freight Inc. | |||
| Divisional Income Statements | |||
| For the Quarter Ended December 31, 20Y3 | |||
| Air | Rail | Truck | |
| Revenues | $ | $ | $ |
| Operating expenses | |||
| Operating income before service department charges | $ | $ | $ |
| Less service department charges: | |||
| Customer support | $ | $ | $ |
| Legal | |||
| Total service department charges | $ | $ | $ |
| Operating income | $ | $ | $ |
Feedback
1. Determine the customer contact rate by dividing service cost by output. For each division's customer support, multiply the customer contact rate by the number of customer contacts. Repeat this process for the other service department charges. Subtract the service department charges for a division from that division's operating income before such charges.
b. What is the profit margin percentage of each division? Round to one decimal place.
| Division | Profit Margin |
| Air Division | % |
| Rail Division | % |
| Truck Division | % |
Identify the most successful division according to the profit
margin percentage.
Truck
3. All of the following statements are true regarding the evaluation of divisional performance for A-1 except:
Select the correct answer from the choices above.:
d
In: Accounting
Wells Technical Institute (WTI), a school owned by Tristana
Wells, provides training to individuals who pay tuition directly to
the school. WTI also offers training to groups in off-site
locations. Its unadjusted trial balance as of December 31, 2016,
follows. WTI initially records prepaid expenses and unearned
revenues in balance sheet accounts. Descriptions of items
a through h that require adjusting entries on
December 31, 2016, follow.
Additional Information Items
An analysis of WTI's insurance policies shows that $2,400 of coverage has expired.
An inventory count shows that teaching supplies costing $2,800 are available at year-end 2016.
Annual depreciation on the equipment is $13,200.
Annual depreciation on the professional library is $7,200.
On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2017.
On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
The balance in the Prepaid Rent account represents rent for December.
|
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2016 |
||||
| Debit | Credit | |||
| Cash | $ | 34,000 | ||
| Accounts receivable | 0 | |||
| Teaching supplies | 8,000 | |||
| Prepaid insurance | 12,000 | |||
| Prepaid rent | 3,000 | |||
| Professional library | 35,000 | |||
| Accumulated depreciation—Professional library | $ | 10,000 | ||
| Equipment | 80,000 | |||
| Accumulated depreciation—Equipment | 15,000 | |||
| Accounts payable | 26,000 | |||
| Salaries payable | 0 | |||
| Unearned training fees | 12,500 | |||
| Common stock | 10,000 | |||
| Retained earnings | 80,000 | |||
| Dividends | 50,000 | |||
| Tuition fees earned | 123,900 | |||
| Training fees earned | 40,000 | |||
| Depreciation expense—Professional library | 0 | |||
| Depreciation expense—Equipment | 0 | |||
| Salaries expense | 50,000 | |||
| Insurance expense | 0 | |||
| Rent expense | 33,000 | |||
| Teaching supplies expense | 0 | |||
| Advertising expense | 6,000 | |||
| Utilities expense | 6,400 | |||
| Totals | $ | 317,400 | $ | 317,400 |
rev: 07_12_2016_QC_CS-55458
3.
value:
14.28 points
Required information
Required:
1. Prepare the necessary adjusting journal entries
for items a through h. Assume that adjusting
entries are made only at year-end.
References
eBook & Resources
WorksheetLearning Objective: 03-P1 Prepare and explain adjusting entries.Learning Objective: 03-P3 Prepare financial statements from an adjusted trial balance.
Difficulty: 3 HardLearning Objective: 03-P2 Explain and prepare an adjusted trial balance.
Check my work
4.
value:
14.28 points
Required information
2.1 Post the balance from the unadjusted trial
balance and the adjusting entries in to the T-accounts.
2.2 Prepare an adjusted trial balance.
References
eBook & Resources
WorksheetLearning Objective: 03-P1 Prepare and explain adjusting entries.Learning Objective: 03-P3 Prepare financial statements from an adjusted trial balance.
Difficulty: 3 HardLearning Objective: 03-P2 Explain and prepare an adjusted trial balance.
Check my work
5.
value:
14.28 points
Required information
3.1 Prepare Wells Technical Institute's income
statement for the year 2016.
3.2 Prepare Wells Technical Institute's
statement of retained earnings for the year 2016.
3.3 Prepare Wells Technical Institute's balance
sheet as of December 31, 2016.
In: Accounting
Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
| March 1. | Paid rent for the month, $3,700. |
| 3. | Paid advertising expense, $2,360. |
| 5. | Paid cash for supplies, $1,010. |
| 6. | Purchased office equipment on account, $15,500. |
| 10. | Received cash from customers on account, $5,060. |
| 15. | Paid creditor on account, $1,480. |
| 27. | Paid cash for miscellaneous expenses, $640. |
| 30. | Paid telephone bill for the month, $240. |
| 31. | Fees earned and billed to customers for the month, $33,700. |
| 31. | Paid electricity bill for the month, $400. |
| 31. | Paid dividends, $2,600. |
Journalize the selected transactions for March 2018.
In: Accounting
In: Statistics and Probability
Need answer ASAP!!!!
Mr. and Mrs. Dint filed their 2015 Form 1040 on March 10, 2017. The couple earned $48,000 from their regular salaried jobs and correctly reported this amount on their Form 1040.
However, during 2015, Mr. and Mrs. Dint also operated an illegal cigarette smuggling business. This side business earned them an additional $18,000. The couple did not report this income on their 1040.
Although their illegal operation was a cash-only business, the Dint's are worried that the IRS might find out about this extra income and charge them penalties and interest for not reporting the income.
What is the latest date that the IRS can assess the Dint's any additional 2015 tax?
|
April 15, 2021 |
||
|
March 10, 2018 |
||
|
April 15, 2018 |
||
|
there is no limit to the statute of limitations on the Dint's 2015 tax return |
In: Accounting
In: Economics
The BouchonCompany started its operations many years ago. The balance sheet for December 31, 2017, showed the following account balances, in dollars (there were no other accounts listed):
Cash 827; Paid in capital 1,000; Loan from bank (0% interest) 800; Dividend payable 100; Accumulated depreciation 250; Inventory 300; Retained earnings 334; Accounts receivable 400; PP&E 1,500; Accounts payable 250; Wages payable 103; Rent payable 30; Advances from customers 160;
During 2018the following transactions occurred:
b. All current and past customers have paid their accounts in full by the end of the year.
Required:
In: Accounting