Kale started the year with Cash of $300,000 and ended the year with $250,000. During the year Kale had cash disbursements of $825,000. What is the amount of Kales cash receipts?
Kale ended the year with $200,000 of accounts receivable. During the year Kale collected $300,000 on it accounts receivable and had $350,000 of sales on credit (earned revenue on credit). What was the beginning balance of accounts receivable?
Kale started with $50,000 of accounts payable and ended the year with $22,000 of payables. During the year Kale paid $102,000 on its payables. What is the amount of credit purchases during the year?
In: Accounting
Tom West is a land surveyor who operates a small surveying company, performing surveys for both residential and commercial clients. He has a staff of surveyors and engineers who are employed by the firm. For the year ending December 31, 2017, he reported the following income and expenses.
| Service Revenue | $840,000 |
| Surveyor Salary | 125,000 |
| Supplies and Materials | 31,000 |
| Utilities | 14,000 |
| Office Rent | 25,000 |
| Administrative Expenses | 105,000 |
Using this information, construct an income statement to reflect his net income for 2017.
| Tom West | ||
| Income Statement | ||
| For Year Ending 2017 | ||
| $ | ||
| $ | ||
| $ | ||
In: Accounting
1. Why is it acceptable for financial accounting to be imprecise?
2. What is materiality?
3. How is materiality determined?
4. What is a misstatement?
5. When is a misstatement considered fraud?
6. Give three examples of uncertainties faced by businesses.
7. Define “U.S. GAAP.”
8. Why is GAAP so important to the capital market system in the United States?
9. Who creates U.S. GAAP?
10. Define “asset” and give an example of one.
11. Define “liability” and give an example of one.
12. Define “revenue.”
13. Define “expense.”
In: Accounting
Simon Ltd receives a non-refundable upfront fee of $2,000 from Customer C for financial consultation advice, on 1 May 2023. Under the agreement with Customer C, Simon Ltd must provide ongoing consulting services until 1 May 2024. An additional amount of $100 per hour is charged for these ongoing services. The normal market rate for equivalent initial consultation fees is $1,400. Required:
Refer to the above information, when and what value should revenue be recognised? Explain with reason(s) to support your answers (IFRS)
In: Accounting
Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)
(Use Excel and Excel Formulas)
In: Finance
Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be $25.10. Calculate total contribution margin at the optimal price. Round your answer to the nearest dollar.
5 - Assume the following demand equation: Q = 729 - 21(P).
Variable costs = $6. Calculate marginal revenue for the 251st unit.
Round your final answer to the nearest dollar.
(When you are calculating the two prices, do not round to less than
2 decimal places. In other words, you are safe to round each price
to the nearest penny.)
In: Finance
A-Corp can supply 50,000 metric tons (MT) of crude palm oil (CPO) to L-Brothers on 15th March 2021. The current CPO price is $3400 per MT. It is expected that the CPO could be trading at $2700 per MT on 15th March 2021. The FCPO (CPO Futures) is currently trading at $3450 per MT. Each FCPO contract is 25 MTs. If the FCPO is trading at $2100 per MT on 15th March 2021, calculate the net sales revenue of A-Corp in this supply transaction if it decides to hedge by using FCPO contracts
In: Finance
Longhorn Insurance offers mail-order automobile insurance to preferred-risk drivers in the state of Texas. The company is the low-cost provider of insurance in this market with fixed costs of $18 million per year, plus variable costs of $750 for each driver insured on an annual basis. The demand curve for the company is: P = $1,500 $0.005Q
A. Calculate price and quantity at the profit maximizing level of output.
B. Calculate price and quantity at the revenue maximizing level of output.
C. Calculate the profits and return-on-sales levels at the profit maximizing level of output.
In: Economics
A manufacturer of microwaves has discovered that male shoppers, on average, have lower values for microwave ovens than female shoppers. Additionally, male shoppers attribute almost no extra value to an auto-defrost feature, while female shoppers, on average, value the auto-defrost feature. The manufacturer has determined that men value a simple microwave at $70 and one with auto-defrost at $80, while women value a simple microwave at $80 and one with auto-defrost at $150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue?
In: Economics
TRUE/FALSE
When a country allows free trade of a good, if the world price is higher than the domestic price
TRUE/FALSE
If a country’s domestic price of a good is lower than the world price, then that country has a comparative advantage in producing that good.
TRUE/FALSE
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off
TRUE/FALSE.
If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus.
In: Economics