In: Accounting
Use the following information for the Exercises below.
The following selected account balances are provided for Delray
Mfg.
| Sales | $ | 1,295,000 |
| Raw materials inventory, Dec. 31, 2016 | 38,000 | |
| Work in process inventory, Dec. 31, 2016 | 55,800 | |
| Finished goods inventory, Dec. 31, 2016 | 62,900 | |
| Raw materials purchases | 186,200 | |
| Direct labor | 228,000 | |
| Factory computer supplies used | 22,200 | |
| Indirect labor | 49,000 | |
| Repairs—Factory equipment | 5,250 | |
| Rent cost of factory building | 59,000 | |
| Advertising expense | 106,000 | |
| General and administrative expenses | 134,000 | |
| Raw materials inventory, Dec. 31, 2017 | 41,400 | |
| Work in process inventory, Dec. 31, 2017 | 39,500 | |
| Finished goods inventory, Dec. 31, 2017 | 69,800 | |
Exercise 14-13 Preparation of schedule of cost of goods manufactured LO P2
Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017.
Exercise 14-14 Income statement preparation LO P2
Prepare an income statement for Delray Mfg. (a manufacturer).
In: Accounting
RGDP per Person Growth Rate The following table summarizes Bureau of Economic Analysis data on NGDP and RGDP from 2010 – 2016. Data are in billions of dollars. Year NGDP RGDP 2010 14,964.40 14,783.80 2011 15,517.90 15,020.60 2012 16,155.30 15,354.60 2013 16,663.20 15,583.30 2014 17,348.10 15,961.70 2015 17,942.90 16,345.00 The following table summarizes U.S. Census Bureau data on population estimates from 2010 – 2016. 2010 2011 2012 2013 2014 2015 2016 309,348,193 311,663,358 313,998,379 316,204,908 318,563,456 320,896,618 323,127,513 What was the RGDP per person in 2010 and 2011? Round up your answer to a full number (no decimals). On the "short scale," one billion is 1,000 million, or 1 and 9 zeroes (1,000,000,000).
RGDP per person in 2010 was $ ________.
RGDP per person in 2011 was $ ________.
Using the exact formula calculate the annual growth rate of RGDP per person in 2011. Round up your answer to the second decimal. The annual growth rate of RGDP per person in 2011 was ________ percent.
In: Economics
Arthur Seth has a rice farmer for several years making up his accounts to December 31st each year. On 1st July, Bernice Aku joined the business Details of the partnership were as follows: Seth Bernice Capital introduced GHC 5,000 GHC 2,500 Profit sharing ratio 2 : 1 Cost of living allowance GHC200 per month GHC200 per month Risk allowance GHC300 per month GHC300 per month Interest on Capital GHC500 per month GHC250 per month Management Allowance GHC300 per month GHC100 per month These allowances were charged in the accounts in arriving at the following profits: Year to December 31, 2016 GHC30,000 Year to December 31, 2017 GHC 45,000 Residual values of assets in use in the business as at 1st January, 2016 were as follows: Tractors GHC 5,600 Farm House GHC 12,000 A combined harvester was purchased in March, 2016 at a cost of GHC 80,000. Required: Determine the chargeable incomes of the partners for the relevant years.
In: Accounting
Additional Funds Needed
The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet:
| Cash | $ 100 | Accounts payable | $ 50 | |||
| Accounts receivable | 200 | Notes payable | 150 | |||
| Inventories | 200 | Accruals | 50 | |||
| Net fixed assets | 500 | Long-term debt | 400 | |||
| Common stock | 100 | |||||
| Retained earnings | 250 | |||||
| Total assets | $1000 | Total liabilities and equity | $1000 |
Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 6% and its payout ratio to be 45%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
In: Finance
Additional Funds Needed
The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet:
| Cash | $ 100 | Accounts payable | $ 50 | |||
| Accounts receivable | 200 | Notes payable | 150 | |||
| Inventories | 200 | Accruals | 50 | |||
| Net fixed assets | 500 | Long-term debt | 400 | |||
| Common stock | 100 | |||||
| Retained earnings | 250 | |||||
| Total assets | $1000 | Total liabilities and equity | $1000 |
Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 7% and its payout ratio to be 30%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
In: Finance
XYZ's stock price and dividend history are as follows:
| Year | Beginning-of-Year Price | Dividend Paid at Year-End | |||||||||
| 2016 | $ | 100 | $ | 4 | |||||||
| 2017 | 120 | 4 | |||||||||
| 2018 | 90 | 4 | |||||||||
| 2019 | 100 | 4 | |||||||||
An investor buys three shares of XYZ at the beginning of 2016, buys another two shares at the beginning of 2017, sells one share at the beginning of 2018, and sells all four remaining shares at the beginning of 2019.
a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answer to 2 decimal places. Do not round other calculations.)
b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2016, to January 1, 2019. If your calculator cannot calculate internal rate of return, you will have to use trial and error.) (Round your answers to 4 decimal places. Negative amount should be indicated by a minus sign.)
In: Finance
Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three-year period.
|
Year |
Pencils |
Envelopes |
||
|---|---|---|---|---|
|
Price |
Quantity |
Price |
Quantity |
|
|
(Dollars per pencil) |
(Number of pencils) |
(Dollars per envelope) |
(Number of envelopes) |
|
| 2016 | 1 | 110 | 2 | 150 |
| 2017 | 2 | 155 | 4 | 215 |
| 2018 | 3 | 120 | 4 | 180 |
Use the information from the preceding table to fill in the following table.
|
Year |
Nominal GDP |
Real GDP |
GDP Deflator |
|---|---|---|---|
|
(Dollars) |
(Base year 2016, dollars) |
||
| 2016 | |||
| 2017 | |||
| 2018 |
From 2017 to 2018, nominal GDP , and real GDP .
The inflation rate in 2018 was .
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.
Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
Real GDP is not influenced by price changes, but nominal GDP is.
In: Economics
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items correspond to revenues or expenses during the year ending in either 2015 or 2016. All values are in thousands of dollars.
| 2015 | 2016 | |||||
| Revenue | $ | 4,000 | $ | 4,100 | ||
| Cost of goods sold | 1,600 | 1,700 | ||||
| Depreciation | 500 | 520 | ||||
| Inventories | 300 | 350 | ||||
| Administrative expenses | 500 | 550 | ||||
| Interest expense | 150 | 150 | ||||
| Federal and state taxes* | 400 | 420 | ||||
| Accounts payable | 300 | 350 | ||||
| Accounts receivable | 400 | 450 | ||||
| Net fixed assets† | 5,000 | 5,800 | ||||
| Long-term debt | 2,000 | 2,400 | ||||
| Notes payable | 1,000 | 600 | ||||
| Dividends paid | 410 | 410 | ||||
| Cash and marketable securities | 800 | 300 | ||||
* Taxes are paid in their entirety in the year that the tax obligation is incurred.
† Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
What was the change in net working capital during the year? (Enter your answer in thousands of dollars.)
In: Finance
It’s September 2015 and United Grain Growers (UGG) wants to hedge the planned sale of 80,000 metric tons of corn in March 2016. Corn is a non-Board grain, and UGG recently acquired this inventory and is storing it in two new concrete high throughput elevators.
Corn futures contracts are available, and to avoid the contracts’ delivery requirements, UGG will hedge using April 2016 corn futures, where one contract is for 5000 bushels. The initial margin requirements are 1650 per contract, spot price for corn today is 3.70 per bushel, while the futures prices for the April contract is 4.25 per bushel. Note: 5000 bushels ≈ 127 metric tons.
In: Finance