Selected data from the financial statements of Italian Marble Co. and Brazil Stone Products for the year just ended follow. Assume that for both companies, dividends declared were equal in amount to net earnings during the year, and therefore stockholders' equity did not change. The two companies are in the same line of business.
| Italian Marble Co. | Brazil Stone Products | ||||||
| Total liabilities | $ | 200,000 | $ | 100,000 | |||
| Total assets | 800,000 | 400,000 | |||||
| Sales (all on credit) | 1,850,000 | 1,060,000 | |||||
| Average inventory | 240,000 | 140,000 | |||||
| Average receivables | 200,000 | 100,000 | |||||
| Gross profit as a percentage of sales | 40 | % | 30 | % | |||
| Operating expenses as a percentage of sales | 36 | % | 25 | % | |||
| Net income as a percentage of sales | 3 | % | 5 | % | |||
a. Compute the net income for each company.
b. Compute the net income as a percentage of stockholders' equity for each company.
c. Compute the accounts receivable turnover for each company.
d. Compute the inventory turnover for each company.
e. Which company is in a stronger financial position?
Compute the net income for each company.
|
Compute the net income as a percentage of stockholders' equity for each company. (Round your answers to the nearest whole number.)
|
|||||||||||
Compute the accounts receivable turnover for each company. (Round your answers to the nearest whole number.)
|
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Compute the inventory turnover for each company. (Round your answers to 1 decimal place.)
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In: Accounting
Bart Co. leases a common piece of equipment to Lisa Corp. The lease begins on January 1, 2020, and includes the following terms:
What is the value of the Right of Use Asset that Lisa Corp. (the lessee) should report on its balance sheet for December 31, 2020?
A. $14,874
B. $74,367
C. $84,779
D. $89,241
E. $90,833
How much interest expense should Lisa Corp. (the lessee) report on its income statement for 2021?
A. $2,377
B. $2,915
C. $3,199
D. $3,570
E. $3,705
How much Sales Revenue should Bart Co. (the lessor) record at the inception of the lease?
A. $0
B. $72,872
C. $89,241
D. $84,000
E. $109,000
What is the value of the Lease Receivable that Bart Co. (the lessor) should report on its balance sheet for December 31, 2020?
A. $72,872
B. $75,787
C. $92,631
D. $96,336
E. $113,360
Please show your steps!
In: Accounting
1) The correct arrangement of the following complex ions in terms of increasing crystal field splitting energy (D) is:
[CrI6]3- [CrF4]- [Cr(en)3]3+ [W(en)3]3+
a) Smallest [CrI6]3- < [Cr(en)3]3+ < [CrF4]- < [W(en)3]3+ Largest
b) Smallest [CrI6]3- < [W(en)3]3+ < [CrF4]- < [Cr(en)3]3+ Largest
c) Smallest [CrF4]- < [CrI6]3- < [Cr(en)3]3+ < [W(en)3]3+ Largest
d) Smallest [CrF4]- < [W(en)3]3+ < [CrI6]3- < [Cr(en)3]3+ Largest
e) Smallest [W(en)3]3+ < [Cr(en)3]3+ < [CrF4]- < [CrI6]3- Largest
2) Determine the number of unpaired electrons for each of the following coordination complexes:
|
[Ni(H2O)6]2+ |
[CoCl6]2– |
Cr(CO)6 |
[Pt(CN)4]2– |
Arrange these complexes in order of increasing number of unpaired electrons (in the answers below an = sign is used if two complexes have the same number of electrons).
a) Fewest [Pt(CN)4]2– < [Ni(H2O)6]2+ < Cr(CO)6 < [CoCl6]2– Greatest
b) Fewest [Pt(CN)4]2– = Cr(CO)6 < [CoCl6]2– < [Ni(H2O)6]2+ Greatest
c) Fewest [Pt(CN)4]2– < Cr(CO)6 < [CoCl6]2– < [Ni(H2O)6]2+ Greatest
d) Fewest [Pt(CN)4]2– < Cr(CO)6 < [Ni(H2O)6]2+ < [CoCl6]2– Greatest
e) Fewest [Pt(CN)4]2– = Cr(CO)6 < [Ni(H2O)6]2+ < [CoCl6]2– Greatest
In: Chemistry
Please assist with the following:
The Philadelphia Phillies defeated the Tampa Bay Rays 4 to 3 to win the 2008 major league baseball World Series (The Philadelphia Inquirer, October 29, 2008). Earlier in the major league baseball playoffs, the Philadelphia Phillies defeated the Los Angeles Dodgers to win the National League Championship, while the Tampa Bay Rays defeated the Boston Red Sox to win the American League Championship. The file MLBSalaries contains the salaries for the 28 players on each of these four teams (USA Today Salary Database, October 2008). The data, shown in thousands of dollars, have been ordered from the highest salary to the lowest salary for each team.
Analyze the salaries for the World Champion Philadelphia Phillies. What is the total payroll for the team? What is the median salary? What is the five-number summary?
Were there salary outliers for the Philadelphia Phillies? If so, how many and what were the salary amounts?
What is the total payroll for each of the other three teams? Develop the five-number summary for each team and identify any outliers.
Show the box plots of the salaries for all four teams. What are your interpretations? Of these four teams, does it appear that the team with the higher salaries won the league championships and the World Series?
MLB Salaries:
| Player | Phillies | Dodgers | Rays | Red Sox |
| 1 | 14250 | 19000 | 6000 | 14000 |
| 2 | 10000 | 15730 | 5375 | 13000 |
| 3 | 8583 | 15217 | 3898 | 12500 |
| 4 | 8000 | 14727 | 3785 | 10442 |
| 5 | 7958 | 10000 | 2875 | 10167 |
| 6 | 7786 | 9517 | 2750 | 9250 |
| 7 | 6350 | 9250 | 2400 | 8333 |
| 8 | 6000 | 9000 | 2300 | 8000 |
| 9 | 5500 | 8000 | 2250 | 6000 |
| 10 | 5000 | 7500 | 1600 | 5083 |
| 11 | 3250 | 7433 | 1275 | 4000 |
| 12 | 3000 | 2000 | 1000 | 3850 |
| 13 | 2400 | 1925 | 800 | 3000 |
| 14 | 1700 | 1115 | 417 | 3000 |
| 15 | 900 | 600 | 413 | 2000 |
| 16 | 900 | 500 | 412 | 1275 |
| 17 | 600 | 454 | 412 | 840 |
| 18 | 500 | 425 | 405 | 835 |
| 19 | 480 | 415 | 401 | 800 |
| 20 | 445 | 411 | 401 | 775 |
| 21 | 440 | 406 | 400 | 457 |
| 22 | 425 | 400 | 398 | 422 |
| 23 | 420 | 393 | 397 | 421 |
| 24 | 415 | 393 | 396 | 406 |
| 25 | 395 | 392 | 396 | 405 |
| 26 | 393 | 390 | 396 | 403 |
| 27 | 390 | 390 | 392 | 400 |
| 28 | 390 | 390 | 390 | 396 |
In: Economics
Overbooking is the practice of selling more items than are currently available. Overbooking is common in the travel industry; it allows a vehicle (airline, train, bus, cruise ship, hotel, and so forth) to operate at or near capacity, despite cancellations, no-shows, or late arrivals.
Overselling is when more confirmed customers show up to use the vehicle than there is space available. When this happens, at least one customer will be denied the service that they paid for, either voluntarily (sometimes with an incentive provided by the supplier) or involuntarily. This is called getting "bumped."
Suppose that for a particular flight, an airline believes that 1% of ticket holders do not make the flight. The jet making the trip holds 188 passengers. If the airline sells 191 tickets, what is the probability that the flight will be oversold and they will have to bump a passenger? Assume that cancellations are independent.
Calculate the probabilities that one, two, and three people will be bumped, and then use those values to determine the probability that at least one passenger will be bumped. Give each answer to four decimal places. Avoid rounding within calculations.
?(one person is bumped)=
?(two people are bumped)=
?(three people are bumped)=
?(at least one person is bumped)=
In: Statistics and Probability
|
Revenue |
216,000 |
|
|
Cost of sales |
91,080 |
|
|
Distribution costs |
21,180 |
|
|
Administrative expenses |
23,760 |
|
|
Interest paid |
2,880 |
|
|
Income tax |
1,800 |
|
|
Property, plant and equipment: |
||
|
Carrying amount at 1 November 20X7 |
270,000 |
|
|
Inventories – 31 October 20X8 |
18,000 |
|
|
Trade receivables |
22,500 |
|
|
Bank |
10,800 |
|
|
Payables |
11,880 |
|
|
Deferred tax – 1 November 20X7 |
12,600 |
|
|
8% Loan note – issued 1 November 20X7, repayable 20Y2 |
72,000 |
|
|
Ordinary $1 share capital |
45,000 |
|
|
Retained earnings – 1 November 20X7 |
100,920 |
|
|
460, 200 |
460,200 |
(i) Revenue includes cash sales of £6 million for goods sold in August 20X8 to Abbeyfax plc, a bank. The goods are marked up at 25% on cost. Abbeyfax has the option to require Nemesis Ltd to repurchase these goods on 1 November 20X8 at their original selling price plus a one-off fee of £180,000. Abbeyfax has not taken delivery of the goods, and has always made Nemesis repurchase goods in the past under similar agreements.
(ii) Included within property, plant and equipment is a building with a carrying amount of £4.5 million. On 1 November 20X7 it was revalued to $6 million. The building had an estimated life of twenty five years when purchased ten years prior to the revaluation date. This has not changed as a result of the revaluation. The directors of Nemesis Ltd wish to incorporate this value into the financial statements for the year ended 31 October 20X8.
All other property, plant and equipment is depreciated at 20% per annum on the reducing balance basis.
(iii) On 1 October 20X8, Nemesis closed down its Merry Go Round division. The results of
the division from 1 November 20X7 to the date of closure are included in the above trial balance figures. These results are as follows:
$000
Revenue 9,800
Cost of sales 6,450
Distribution costs 2,040
Admin expenses 1,980
The net assets of the division were sold at a loss of $3.2 million which is currently included
within cost of sales. The Merry Go Round division satisfies the criteria for a discontinued
operation under IFRS5 Non-current Assets Held for Sale and Discontinued Operations.
(iv) The provision for income tax for the year ended 31 October 20X8 has been estimated at $23.4 million. The only temporary differences for deferred taxation purposes are in respect of accelerated capital allowances, which at 31 October 20X8 were $43.2 million. Income tax is charged at 20%.
(v) The company has a share option scheme in operation. The terms of the options are that option holders are permitted to subscribe for 1 equity share for every option held at a price of £2 per share. At 1 November 20X7, 20 million share options were in issue. On 1 May 20X8, the holders of 10 million options exercised their option to purchase, and 14 million new options were issued on the same terms as the existing options. During the year ended 31 October 20X8, the average market price of an equity shares in Nemesis Ltd was £4.00.
Required:
Prepare a statement of profit or loss and other comprehensive income for the year ended
31 October 20X8 for Nemesis together with a statement of financial position and a statement of changes in equity at that date.
In: Accounting
The Polaris Company uses a job-order costing system. The following transactions occurred in October:
Raw materials purchased on account, $210,000.
Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials).
Accrued direct labor cost of $48,000 and indirect labor cost of $21,000.
Depreciation recorded on factory equipment, $105,000.
Other manufacturing overhead costs accrued during October, $130,000.
The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,100 machine-hours were used in October.
Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
Jobs that had cost $449,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 30% above cost.
Required:
1. Prepare journal entries to record the transactions given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000.
Raw materials purchased on account, $210,000.
Note: Enter debits before credits.
|
Record the raw materials issued to production, $190,000 ($152,000 direct materials and $38,000 indirect materials).
Note: Enter debits before credits.
|
Record the entry for accrued direct labor cost incurred, $48,000; indirect labor cost incurred, $21,000.
Note: Enter debits before credits.
Depreciation recorded on factory equipment, $105,000. Note: Enter debits before credits.
Other manufacturing overhead costs accrued during October, $130,000. Note: Enter debits before credits.
|
Record the cost of goods sold.
Note: Enter debits before credits.
|
Record the sales on account.
Note: Enter debits before credits.
|
Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000.
|
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In: Accounting
Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:
Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,500.00 |
|
|
2 |
Accounts Receivable |
38,400.00 |
|
|
3 |
Prepaid Insurance |
7,200.00 |
|
|
4 |
Supplies |
1,980.00 |
|
|
5 |
Land |
112,500.00 |
|
|
6 |
Building |
300,250.00 |
|
|
7 |
Accumulated Depreciation-Building |
87,550.00 |
|
|
8 |
Equipment |
135,300.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
97,950.00 |
|
|
10 |
Accounts Payable |
12,150.00 |
|
|
11 |
Unearned Rent |
6,750.00 |
|
|
12 |
Jan Pitman, Capital |
371,000.00 |
|
|
13 |
Jan Pitman, Drawing |
15,000.00 |
|
|
14 |
Fees Earned |
324,600.00 |
|
|
15 |
Salaries and Wages Expense |
193,370.00 |
|
|
16 |
Utilities Expense |
42,375.00 |
|
|
17 |
Advertising Expense |
22,800.00 |
|
|
18 |
Repairs Expense |
17,250.00 |
|
|
19 |
Miscellaneous Expense |
6,075.00 |
|
|
20 |
Totals |
900,000.00 |
900,000.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at October 31, $600. |
| b. | Supplies on hand at October 31, $675. |
| c. | Depreciation of building for the year, $12,000. |
| d. | Depreciation of equipment for the year, $8,600. |
| e. | Unearned rent at October 31, $2,250. |
| f. | Accrued salaries and wages at October 31, $2,800. |
| g. | Fees earned but unbilled on October 31, $10,050. |
| Required: | |
| 1. | Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pitman Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
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1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 158/176
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In: Accounting
Sales receipts. California Cement Company anticipates the following fourth-quarter sales for 2014:
$1 comma 800 comma 0001,800,000
(October),
$ 1 comma 600 comma 000$1,600,000
(November), and
$2 comma 100 comma 0002,100,000
(December). It posted the following sales figures for the third quarter of 2014:
$ 1 comma 900 comma 000$1,900,000
(July),
$2 comma 050 comma 0002,050,000
(August), and
$2 comma 200 comma 0002,200,000
(September). The company sells
90 %90%
of its products on credit, and
10 %10%
are cash sales. The company collects credit sales as follows:
60 %60%
in the following month,
20 %20%
two months later, and
19 %19%
three months later, with
1 %1%
defaults. What are the anticipated cash inflows for the last quarter of 2014?
Given the July sales of
$1 comma 900 comma 0001,900,000,
The amount collected in July is
$nothing.
(Round to the nearest dollar.)The amount collected in August is
$nothing.
(Round to the nearest dollar.)The amount collected in September is
$nothing.
(Round to the nearest dollar.)The amount collected in October is
$nothing.
(Round to the nearest dollar.)The amount not collected is
$nothing.
(Round to the nearest dollar.)Given the August sales of
$2 comma 050 comma 0002,050,000,
The amount collected in August is
$nothing.
(Round to the nearest dollar.)The amount collected in September is
$nothing.
(Round to the nearest dollar.)The amount collected in October is
$nothing.
(Round to the nearest dollar.)The amount collected in November is
$nothing.
(Round to the nearest dollar.)The amount not collected is
$nothing.
(Round to the nearest dollar.)Given the September sales of
$2 comma 200 comma 0002,200,000,
The amount collected in September is
$nothing.
(Round to the nearest dollar.)The amount collected in October is
$nothing.
(Round to the nearest dollar.)The amount collected in November is
$nothing.
(Round to the nearest dollar.)The amount collected in December is
$nothing.
(Round to the nearest dollar.)The amount not collected is
$nothing.
(Round to the nearest dollar.)Given the October sales of
$1 comma 800 comma 0001,800,000,
The amount collected in October is
$nothing.
(Round to the nearest dollar.)The amount collected in November is
$nothing.
(Round to the nearest dollar.)The amount collected in December is
$nothing.
(Round to the nearest dollar.)The amount collected in January is
$nothing.
(Round to the nearest dollar.)The amount not collected is
$nothing.
(Round to the nearest dollar.)Given the November sales of
$1 comma 600 comma 0001,600,000,
The amount collected in November is
$nothing.
(Round to the nearest dollar.)The amount collected in December is
$nothing.
(Round to the nearest dollar.)The amount collected in January is
$nothing.
(Round to the nearest dollar.)The amount collected in February is
$nothing.
(Round to the nearest dollar.)The amount not collected is
$nothing.
(Round to the nearest dollar.)Given the December sales of
$2 comma 100 comma 0002,100,000,
The amount collected in December is
$nothing.
(Round to the nearest dollar.)The amount collected in January is
$nothing.
(Round to the nearest dollar.)The amount collected in February is
$nothing.
(Round to the nearest dollar.)The amount collected in March is
$nothing.
(Round to the nearest dollar.)The amount not collected is
$nothing.
(Round to the nearest dollar.)The receipts for October are
$nothing.
(Round to the nearest dollar.)The receipts for November are
$nothing.
(Round to the nearest dollar.)The receipts for December are
$nothing.
(Round to the nearest dollar.)
In: Finance
CASH BUDGET & PRO FORMA INCOME STATEMENT
You are given the following information for the Thib’s Oil Service Company:
Actual Sales 3rd QTR Estimated Sales 4th QTR
July $1,200,000 Oct. $3,000,000
Aug. $1,400,000 Nov. $5,000,000
Sept. $1,600,000 Dec. $7,000,000
******************************************************************
Actual Purchases 3rd QTR Estimated Purchases 4th QTR
July $1,000,000 Oct. $3,000,000
Aug. $1,500,000 Nov. $4,000,000
Sept. $2,000,000 Dec. $1,000,000
__________________________________________________________________
One-half (50 percent) of the sales each month are for cash, 30 percent is collected one month later and 20 percent is collected two months later.
Thib pays cash for 90% of its purchases and pays the other 10% the month following the purchase.
Other monthly cash expenses are estimated at $50,000 (rent), $90,000 (salaries) and $10,000 (interest).
Depreciation is $40,000 per month.
Cost of Goods Sold is 70% of Sales.
No change is expected in the 50% income tax rate. Income tax expense for October through December (4th QTR) will be paid in December.
Preferred Dividends of $100,000 will be paid in November.
Equipment totaling $4,000,000 will be purchased for cash in October.
In November, the firm will sell equipment for its book value (no tax consequence) of $200,000. The money will be collected in December.
The Company intends to float a $10,000,000 (raise capital by issuing bonds) bond issue in October. There will be 5% investment banker fee which will be paid in November (disregard for the income statement). The money for the bond issue will be received in December.
The cash balance is $100,000 on October 1, and a minimum balance of $100,000 is desired.
Prepare a Pro Forma Income Statement and a monthly Cash Budget for the Company AND ANSWER THE QUESTIONS ON THE ANSWER SHEET.
YOU MUST TYPE YOUR PRO FORMA INCOME STATEMENT, CASH BUDGET AND THE ANSWEER SHEET.
PRO FORMA INCOME STATEMENT
4th QTR (000’s)
SALES $15,000
___________ __________________
Gross Profit __________________
Rent(50k) 150
Salaries((90k) 270
EBDIT ___________________
________
________
________
CASH BUDGET 4th QTR (000’s)
AUG SEPT OCT NOV DEC
SALES 1,400 1,600 3,000 5,000 7,000
PURCHASES 1,500 2,000 3,000 4,000 1,000
-------------------------------------------------------------------------------------------------------------------------------------------
I. CASH INFLOWS
1.Cash Sales
2.
3.Col AR 2
4.Sell Equipment
5.
TOTAL CASH INFLOWS ____________________________________________
II. CASH OUTFLOWS
1. Cash Purchases __________________________________
2. Pay AP __________________________________
3. Rent, Salaries, Interest
4.
5.
6.
7.
III. TOTAL CASH OUTFLOWS
IV. NET CASH FLOW
V.
VI.
VII.
What is the firm’s Cost of Goods Sold? $_____________
What is the firm’s Net Income (Income After Taxes) $_____________
What is the Income Available to Common Stockholders? $_____________
What is the expected total cash inflow for October? $_____________
What is the expected net cash flow for October? $_____________
What is the expected total cash outflow for November? $_____________
What is the expected surplus or shortage for October? $_____________
What is the required cash balance? $_____________
What is the total amount of loan the Company needs? $______________
Will the firm be able to pay off its loan is December? Yes or No
In: Accounting